Browsing the Internet and watching television, I noticed lately an abundance of information about foreclosure , but instead of helping educate homeowners, it seems to be adding to their confusion and frustration. Troubled homeowners often believe that they are alone with their challenges, and the information they receive often provides conflicting advice on how to proceed.

In San Francisco, over 209 homes entered foreclosure in March, up 30 percent from January.  In January of this year, 30% of homes were taken back by the bank.  This is NOT acceptable for the community I serve.  Here at the Ildiko Pali Team, we are local homeowner advocates.  We have created a FREE report to HELP that 70% of homeowners called “Stopping Foreclosure, Understanding Your Options.”  This detailed report throughly educates homeowners on their options, providing various alternative solutions that examine the short and long term consequences of homeowners that want to KEEP, RENT, or SELL their property.

Click the link to download and print your FREE report.  Below, I’ve compiled the Top 3 Foreclosure myths debunked to sprinkle a little clarity on the recent foreclosure information storm.

Top Three Foreclosure Myths:

1. Myth: Lenders will not accept Short Sales unless the homowner is behind on their payments.

Truth: This is simply not true.  In most cases, we have successfully completed short sales for clients who haven’t missed a single payment.  The homeowner must show a valid hardship, which could be out of area job transfer, loss of income, dwindling savings that will be used up by a certain date in the near future and can not hang on to the property any longer.

2. Myth: Homeowners must be late on their payments to try for a Loan Modification.

Truth: Many banks suggest homeowners can try for a loan modification once they are behind on their payments.  However, once they are behind the bank moves the property into foreclosure, and then the homeowner often runs out of time and doesn’t have enough money to cure the loan.  Look into your options before you even get behind of payments. We can also refer you to reputable Loan Modification consultants if needed.

3. Myth: Homeowners can save their home by paying off mortgage payments with their credit cards.

Truth:  Using a credit card just borrows the debt from one place to another, while adding 18 percent of interest.  This is not a solution!

How WE can HELP: At our FREE consultation, we review all your options, looking at various alternative solutions, and show you the short and long term consequences of each.  We will then design a plan and backup plan with step by step guidelines on how to implement it to accomplish your goals.

How YOU can HELP: If you have an acquaintance, a loved one, or know of a business professional with a client that could benefit from this information, please forward our post!

For more information, feel free to contact us at 415-412-8721 or at info@sfforeclosure.com

A past client of the Ildiko Pali team, Eddie, a lawyer living in San Francisco, tried to negotiate a loan modification on his condo in the Mission District of San Francisco, while still paying his mortgage and honoring the system. After a year and a half of fighting the bank’s maze of bureaucracy, he gave up on that course of action.

Eddie was then referred to Princeton Real Estate, given their extensive experience in Short Sale transactions since 1995. There is a common misconception that only people in foreclosure can submit Short Sales, but Eddie was without deficiency. He simply had to get relocate and sell his home with huge negative equity.

There are many lawyers who call themselves as a better option over real estate agents to take on Short Sale transactions given their legal knowledge. However, that work often comes with high upfront costs for homeowners that not everybody can afford.  Real estate agents, on the other hand, work for free until the close of the transaction and are then paid their commission by the lender. On either end, a qualified representative must have extensive knowledge and expertise in the field in order for success.

 The Ildiko Pali team was able to demonstrate Eddie’s genuine financial hardship, negotiate a successful discounted payoff with the lender, and successfully close the transaction. Sometimes, a qualified real estate agent can do what an attorney can not in this housing market.  Just ask Eddie.

Interviewed by Christine Meade.

Christine: Tell me a little bit about your experience with Short Sale and working with Princeton Real Estate.  What property were you selling?

Eddie: I was selling my loft condo at 2130 Harrison St. [San Francisco]. I bought it in 2005, and because of financial reasons, I was trying to sell it.  I was very fortunate that over a period of time we were able to do a short sale..

Christine: How did you hear about Princeton Real Estate and the Ildiko Pali Team?

Eddie: Through referrals from friends.  This was my first time selling. I had heard that Ildiko was great.

Christine: What was it like working with Ildiko?

Eddie: It was fantastic.  Ildiko takes care of everything and made the process as painless as possible. She is very thorough and followed up on a lot of details. She explained the process to me very well from the beginning, letting me know what it would entail and what to expect.  She  explained what would happen very accurately, both the challenges and the successes.

Christine: Where there any challenges during the Short Sale process that you faced?

Eddie: First, locating a buyer was very hard.  The buyer’s offer came in so low it was scary.  The place looked nice, and they [Princeton] did a great job showing it, but the market was so bad.  Once they did locate a buyer, they were able to keep the buyer interested, even though it was a long process and the buyer could walk away any time.

Christine: What was the best part of the selling process?

Eddie: I was always confident things would be taken care of.  Ildiko was great negotiating with banks. Things just moved along and then we got  the approval. I was just following along.  As a lawyer, I knew nothing about Short Sales, and I learned all about it through ildiko. It’s a very complicated subject area, and she instructed me very well through it.

Christine: Where to now?

Eddie: I’m still figuring out where I want to live.  I might try a new city.

Christine: Any other comments on your overall experience?

Eddie: Kate [Fomina] and ildiko are a great team.  It was nice having someone on your side that knew what they were doing. It was comforting to not have to worry through whole process. They negotiated a better deal than I would have been able to do myself.  I got the best from what I could have out of the situation.

In a recent Money Class on KQED, Suze Orman advised that we need to learn to live below our means, not within them. This means focusing to pay off credit cards, car loans, and high mortgages.  According to her, our weak economy is a sign that we need to rethink our values. She believes we have to once more reinvent the American Dream to center around family values and simplifying our life.

Orman recommends individuals take the time to plan how and where to invest their money.  In today’s real estate market, an individual needs 20 % down, ideally 8 months of emergency funding on reserve, and a plan to live in their home for at least 10 years said Suze. To live the New American Dream we need to stick around in our home for a while, and simply simplify.

At the Ildiko Pali team, we believe the New American Dream really isn’t that different from the old one.  Real estate has always been a long-term investment, it just needs to be an investment that makes sense financially. For those that can afford it, right now is the best time to buy while the market is saturated with low priced listings and low interest rates.

Our goal is also to help our clients simplify their lives when they are overextended, overwhelmed, ready for retirement, or just needing a change.  Our team is expert at getting rid of negative equity by negotiating short sales, discounted payoffs with lenders.

Are you ready to simplify your life and realize your New American Dream? Let us help! Email info@sfforeclosure.com.

Be sure to check out our blog next week for the Top Five Must-Read Tips to simplify your life!

I don’t believe I have any difficult clients–I only have clients in difficult situations.  As a real estate consultant, my goal is to find simple solutions to my client’s problems.  One of the biggest difficulties my clients often come up against is their attachment to things or ideas, whether it be owning a particular home, driving the dream car, or living in a certain neighborhood.  However, I have learned that sometimes the best and quickest way to a solution is to give up on our attachments.

A few years back, I was working with a client in Hillsborough.  This couple had lost their business and was behind in their mortgage payments.  In order to avoid foreclosure, they were considering selling their home, but they really wanted to stay until their children finished high school.

The couple owned a number of valuable antiques, and I recommended they sell one piece in particular, in order to use the money to cure their loan and remain in their home.  It took them three weeks just to agree to my proposed solution even though their house was at stake.  It’s easy to feel attached to the belongings or places we’ve accumulated throughout our lives, but sometimes the best things come out of opening yourself to detachment.

I found a buyer for their antiques, and it generated enough profit to allow them to remain in their home and their children to finish high school. Although I did not sell their home I’ve closed five transactions over the years from the referrals they’ve sent me. I still receive Christmas cards from the family every year.

What attachment have you let go in order to reach a better solution?

“Enjoy everything that happens in your life, but never make your happiness or success dependent on any attachment to any…place or thing.” -Wayne Dyer

I arrived in Nirarta in Sideman at the Living Awareness Centre in the foothills of Mt. Agung in December. The centre, created by Professor Peter Wryca from the UK, managed to create a utopia that I referred to as “East of Eselan.”  Peter developed a beautiful, peaceful place to rest and quiet the mind of the world’s negative chatter.  The centre reminded me how amazing it is that an individual’s fully-realized vision can create a place of Heaven on Earth.

In Nirarta, I was surrounded by the sounds of the river, birds singing, and the beautiful view of the mountains and rice fields.   I watched the quiet Balinese people working on their much loved and respected land.  I felt like I was at the ballet watching a beautifully choreographed dance between nature and the Balinese people, moving together in harmony to the sound of the river. This place was magical.  God lives in places like this.

The Balinese sense of duty and dedication to their loved ones is to be greatly admired.  In their culture, when it comes to the celebration of life and death, nothing else matters.  All business comes to a halt.  Isn’t that the way it should be?

 We don’t have to travel to far away places to find beauty, peace, and harmony.  It is all around us.  We just need to open our senses to see and learn.  Maybe it is right in our own backyard!  

 Where is your heaven on earth?

 Poem by Rumi:

“I have shrunk beyond the smallest atom

Expanded further than the last star

All that is left of Rumi is only.

This garden laughing with fruit”

I was lucky enough to spend the tail end of 2010 in Bali.  The harmony and peace I found from such a gorgeous country really centered and prepared me for another year of helping clients to achieve their own harmony.  My goal for 2011 is to work with clients on simplifying their lives, as they prepare for moving, downsizing, and other lifestyle changes. To do so even more effectively, I’ve developed a Transition Team of professionals dedicated to smoothing the road for clients who are overwhelmed, overextended, or headed for retirement.

I can only hope for your continuous support for a successful 2011, as we work to serve YOU in all of your real estate needs.  We appreciate your referrals, and pledge to provide each client with the utmost attention, service, and harmony in every transaction.  For more information on what is new at Princeton Real Estate for 2011, follow us on facebook or twitter!

Wishing you a successfully 2011, full of wonderful surprises,

 The Ildiko Pali Team

As a real estate business owner/broker, I received the disigantion of  Seniors Real Estate Specialist (SRES) from the National Association of Realtors (NAR).  For 2011, I decided to focus my knowledge and expertise on this particular generation of people preparing for retirement.  I am very excited to announce that a few members of my BNI will be joining forces with me to jumpstart the Transition Team.  The Transition Team is a group of professionals, including myself, a  professional organizer, a mortgage consultant, and an aging and adult care consultant.  We will work together to gracefully transition baby boomers into their Golden Age, whether they are overextended, overwhelmed, or just want to simplify their lives.

Given the much-discussed economic condition, retirement can be very difficult, and in some cases nearly impossible.  The Transition Team would offer professional help to reduce financial stresses, and ease them into a comfortable and happy retirement. Our goal is to assist baby boomers and their families in making the right real estate investment decisions, choosing the right living space, and getting the right in-home care.  We all deserve what’s best for our lives, no matter our age.  We can smooth out that bumpy retirement road with help from the Transition Team.  If you have expertise in a field that would add value to our team, contact me at ildiko@princeton-realestate.com for more information!

One of the biggest challenges to our industry has been the recession. A word whispered and feared for its negative connotations.  We try to hide from it, sweep it under the rug, but it’s still on the tip of our tongues. This week during our Business Networking International (BNI) meeting, the question was posed to the group: is the recession really over?

Our BNI chapter is comprised of business representatives from all industries, who wanted to remain positive, as we all have high hopes from the new year.  The numbers are better, it seems.  Although down from 2010, those numbers upon closer inspection are still projecting that 4 million US homeowners will face foreclosure in 2011.  That is one out of every 500.  In San Francisco, we may not feel these effects as much as other parts of the bay area, but that’s not reason enough to put the blinders on.  That’s still a lot of people that will need to drastically alter their lives, as they search for simplification.

So, we don’t think it’s over, but we remain hopeful that things are getting better.  If you are or know some one that could make their lives that much simpler with some expert real estate advice, email us at info@sfforeclosure.com.   And while you’re at it, let us know how things look from your viewpoint? Is the recession really over?

“What exactly are you looking for?” I asked.

Looking a bit lost (rightly so) and maybe even overwhelmed, he said, “A home for my wife and I. I recently returned from service in Iraq.”

“And how much are you looking to spend per month? And where are you looking to live?”

“About $1500, anywhere from San Francisco to the peninsula.”

After a few minutes of conversation, I was shocked to realize that the man was not aware that he was eligible for a VA loan, which would allow him to purchase his own home with no money down and pay less in monthly mortgage than he planned to pay in rent.

“Really? Even in the Bay Area?” he asked.

 After sitting down with this couple and explaining to them a few possible options they had, I was thinking about how so many veterans are trained to protect our country, only to return home unaware of all the benefits that await them.  Are we sufficiently performing our social responsibility to help them transition back into society?

I asked around looking for resources that educate veterans about their benefits.  I came across a few VA support groups, including “The Coming Home Project” led by Joseph Bobrow.  Here at Princeton Real Estate, we are happy to provide free consultations for veterans and their families looking for either their first home or an opportunity to learn more about the real estate benefits awaiting them.

Welcome home veterans!  Thank you for protecting us, and we are here to make sure you are protected! If you are a veteran, or know one, send them our way so we can help them find their dream home! 

Princeton Real Estate

(415) 923-7628

When brother and sister, Rose and Alex Tsapenco, moved from Europe to San Francisco, they purchased the former fixer-upper with the hope of creating their dream Tuscany-inspired home.  And now, the doors to that home are for you…

As the creative and constructive genius behind the home, which rests on the borders of Golden Gate Heights and Forest Knoll neighborhoods close to UCSF, Alex’s careful eye and skillful touch is evident from European wooden accents on the ceiling’s light fixtures, to the elegant hand-painted tiles in the bathrooms and kitchens.

As owner of Magic Brush Painting, Alex created the property’s exterior so it never needs to be touched up or re-painted.  The entire home is also reinforced with the strongest of steel beams in order to support a third floor. “I built with all the permits,” said Alex.

The house is designed to expand up to 3,000 square feet, allowing the buyers to construct their own dream master bedroom, with walk-in closet, and bath outfitted with the top amenities.  The luxurious master suite would open onto a private deck, providing a bit of the magic of Tuscany with uninterrupted views of Golden Gate Bridge and park.

A grand bay window welcomes natural light in the front living area, complete with a fireplace.  The entirely remodeled kitchen is complimented by a peninsula designed with a marbled mosaic and exotic travertine tiles from India covering the floor.

The quaint downstairs unit, perfect for a live-in nanny, has its own separate entrance and relaxing sauna attached to the second bathroom.  French sliding doors lead to an expansive patio covered in rare Mexican clay tiles.

Raised flower beds and accent lighting make for a romantic outdoor setting reminiscent of a Tuscan garden.  The added building at the back of the patio is perfect for a private gym or office.

Young professionals, especially doctors and lawyers, are drawn to the neighborhood because of its close proximity to USF Medical Center.  The neighborhood boasts the added convenience of a school, hospital, transportation, museums, parks, and restaurants all within a few blocks.

“We hope for people who love architecture, and will get as much pleasure out of living in this house as we did.  My son grew up in this house and it’s a great place to raise a family,” said Rose of this bit of Italy hidden in the convenient and lovely San Francisco neighborhood. “We brought our soul here.  Everything in here was touched by love.”