Normally I'd say DON'T till, but it appears that when the pool was there someone dug out and put the dirt to the sides and behind. I'd till those areas only and use the loose soil from those hills to fill in where the pool was and grade and level it so the water doesn't run towards the hose. This should be done ASAP so that it can settle before you seed end of August 1st of September. Use RU now to kill everything off, scalp and bag or rake,, then till and grade, then water regularly to help the soil settle and weeseed to germinate, then RU again and wait 24-36 hours to seed. Check NTEP at a test site near you or with similar conditions to find a grass type and color you want. Is that lawn on the North side of your home? If so, how many hours of shae does the house cast on the near part of your lawn?
You have a lot of hard work ahead of you and a short time to do it.

The shade starts about 3pm and there is a natural slant towards my house so i think that i am going to have to till and slant it towards the side, the back of my house is the bottom of a hill but my front is at the top on my street...What does grade mean and weeseed? now after I till should i put some new soil down and how much or is there any certain kind that will be better? And do i have to compress the dirt? do I have to put hay down on top of the fresh seed?I am going to start this tomorrow or the next day, thank you for your help

Grade means direction of the slant of the yard--you'll want to direct water away from your house and grade it so there is no pooling of water. Sorry, that was supposed to be weed seed. I wouldn't till the whole yard--just where the mounds are around the pool so you can move the soil into the pool spot. If you need to add soil, you should probably look for screened topsoil. Any disturbed or fresh soil is going to take a couple of years to settle (that's why you don't want to till anymore than necessary), To help it settle you can roll it and water it regulary. You want straw, not hay, Rather than straw, consider topdressing, e.g. putting down a quarter inch or less of peat moss or soil over the seed, but straw will work if peat moss is too expensive.

OK got it!!!Thank you so much that really helped a lot!!! I know this is going to be hard work i just hope i do not ruin it...it could be such a beautiful yard.