On Thursday, at 11:00 a.m., a couple lost their home at a foreclosure auction at the entrance to the Hall of Justice in Ventura. It was bought by a third party investor.

While this happens every day in Ventura County, this particular case is poignant to me because it didn’t have to end this way. This couple had been trying to do a loan mod. But as many of you know, the so-called “dual track” process can be running simultaneously while the homeowner tries to get their loan mod.

Several months ago Don had spoken to this couple about the possibility of doing a HAFA short sale (the US Treasury’s ‘graceful exit’ program for distressed/under-water owners). It was apparent to us their financial situation was dire, but they insisted they were working with their lender on a loan mod.

Last Friday, when their auction was finally set, Don and I spoke to them again about their time running out. The husband stated he was told by their lender that he was going to get a decision on their loan mod by “next Friday” (the 8th). But we said, the auction is set for next Thursday!

They listened to us, but we sensed either a stubbornness, or perhaps indecision, about what they were going to do. They genuinely (I think) thought everything was going to “work out” okay.

I’ve written and counseled that distressed homeowners have to go through the so-called 5 stages of grief (denial, anger, bargaining, depression, acceptance) before they can deal with the financial decisions of their home. Many homeowners are stuck in denial and anger and never get to the point where they can make the best financial decisions for their family.

So it saddened me knowing that a stranger was going to knock on this couple’s door and say he was now the new owner of their home.