With the continued problems in the mortgage markets, we are getting one to two inquiries a day from consumers and investors interested in short sales and foreclosures. Every week at the three real estate marketing meetings we attend (covering San Ramon, Danville, Alamo, Walnut Creek, Concord, Dublin and Pleasanton, CA), we are hearing more and more from our fellow agents about transactions falling through, short sale listings, and possible foreclosures.

This is not to say that the entire housing market in the 680 corridor is a mess. On the contrary, the market in general remains fairly stable as housing prices correct from years of record appreciation and easy money to borrow. It appears that we may be nearing the bottom of the correction (barring any other major upheavals). We expect the situation to stabilize by the end of the year and see next spring bringing us back to a normal market with better lending standards in place.

Getting back to the current situation of interest in short sales and foreclosures, we notice a significant lack of knowledge from those inquiring on the foreclosure and short sale process. The average person is unaware of the hassles and complexities involved in a successful short sale or foreclosure transaction. They've seen infomercials and ads from "real estate gurus" on how they can get sweet deals or easy profits from short sales or foreclosures.

If you've never been to a foreclosure auction, it is an experience worth having. First, be sure to show up with a briefcase full of cashiers checks, like the professionals do. You'll be in a bidding war with people who have been making a living at this for quite some time. Also, wear your thick skin because these folks can be quite intimidating as they try to scare you away.

The short sale process is a little different. You have to be prepared for 60 or 90 days of exasperating and frustrating non or minimal communication from a ponderous lending institution that is unsympathetic to your need for a smooth and timely transaction. The thing that can really surprise you and chap your buns is when, at the last second, as you are prepared to sign the papers, the institution holding the note changes their mind and just walks away. This after you have spent your time negotiating in good faith and suffering all of the hassles.

Before you jump into the foreclosure or short sale game, talk to someone who has actually gone through the process. Hear a few horror stories just to give you an idea of how weird things can get. Many people currently selling real estate have never been through either process. A market with similar conditions and pressures hasn't affected the East Bay since the early nineties. Local brokerages and MLS associations are offering a smorgasbord of monthly classes on short sales and foreclosures to help educate agents on the transaction processes for each of these situations.

As we talk to people calling in with interest in foreclosures and short sales, what we find is that people just want a good deal. There are plenty of them out there right now in the San Ramon Valley. The determining factor at present is – can you get the financing?