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Doubts Raised About Georggin Law Firm’s Ability to Speed Up Loans

Carlsbad law firm markets itself as being able to “clean up” credit reports of short-sale clients.

Updated: 1:45 p.m. Aug. 26, 2011

Georggin Law, a Carlsbad law firm, is marketing itself to families countywide who have sold their homes through a short sale, offering to “clean up” their credit reports so they can repurchase a home without waiting the two to four years required by banks and other lending institutions. 

Georggin has sent similar letters to La Mesa-area Realtors and real estate agents.

After a short sale via conventional loan, buyers must wait four years before they can qualify for a new one, and three years after a HUD loan. The waiting period for those having used a VA loan is two years.

Georggin has been successful in getting some lenders to remove evidence of late payments and indications of a short sale from the credit report. The lender* tells prospective buyers they can now apply for a loan and mark “no” in the box on the application that asks if they have had a foreclosure or deed in lieu of foreclosure—since a short sale is neither of these.

(Although short sales are usually reported by the credit reporting companies, many times they are not—for a variety of reasons.)

This seldom goes undetected by a knowledgeable and experienced loan representative—simply because the resolution of the loan is left unexplained on the credit report.

But this status in most cases will be picked up by the underwriter at some point in the transaction or even just before escrow closes. 

Fannie Mae, HUD and VA all require certification that short sales meet their underwriting guidelines.  Instead of paying for a “service” that is almost certain to fail, it is better to save the money and put it toward the next home purchase when the time is right. 

For their part, Georggin Law says: “We guarantee the client’s money 100 percent if we fail, in any respect, to successfully remove a client’s negative credit entry regarding the short sale.”

East County Board of Realtors Day at the Races

This annual event took place on Aug. 3—one we always look forward to. 

Some won and some lost, but as you can see from the photos and video (attached), everyone had a great time. 

Giving from the Heart

It has been almost 10 years since the Realtors Relief Foundation was founded the day after the 9/11 tragic national disaster.  Since that time, National Association of Realtors members have donated more than $22 million in response to disasters around the world. 

In keeping with this tradition of generosity, Nicole Phillips Designs will be selling original aprons at the monthly Windermere SoCal networking wine and cheese event Aug. 26, and donating 10 percent of all proceeds to the foundation.

This Week in La Mesa Real Estate

Some 13 single-family detached homes came on the market last week and five condos/townhomes. 

My Picks of the Week are 8470 Dallas St., a refurbished 1953 three-bedroom and one-bath home with a nice back yard priced at $309,000. It was listed by Joseph Garzanelli of Keller Williams in La Mesa. 

Another listing by a Keller Williams Realtor, Nancy Dennison, is my second pick this week.  Imagine living in a 1,445-square-foot, two-bedroom and two-bath condo on the fourth floor in downtown La Mesa with shopping just an elevator ride down. 

Built in 1992, 4701 Date is a unique property. Listed for $365,000, it is ready for the new owner who wants the comfort of a small city with all the amenities of urban living.                                                 

*Editor’s note: An earlier version of this column incorrectly said “the firm.”

John H December 04, 2012 at 10:34 PM
I don't see any actual citations from clients who were taken by this firm, any investigations by regulatory or supervisory agencies into their practice, or any evidence for these "doubts raised" other than your personal opinion about their services, and you don't mention having ever worked with them yourself as proof in support of these doubts. I'm both a direct lender and broker in CA, and I've referred clients to this firm in 2012. The firm has performed fine for my clients who retained them. A short sale that is amended to show as "Paid As Agreed" with no history of late payments doesn't leave anything unresolved or not explained. There'd be no reason for a loan officer or underwriter to question that. It's no longer a "settled account". Further, your statement about the lockout periods after a short sale are inaccurate. You may refer your clients to a bank / broker that follows these very limited guidelines, but someone can purchase a home with a prior short sale in less than 2-4 years when there were no late payments leading up to the sale, and/or qualified "extraneous circumstances" apply. Fannie Mae requires only 2 years with 20% down and reestablished credit. FHA is 3 years. Portfolio banks and credit unions follow their own rules, or mirror agency guidelines. The more relevant issue for those seeking to repurchase following a short sale is that the new property must be a sizable distance from the market in which the previous home was short sold.
Rose June 10, 2013 at 07:38 PM
John H... It appears that you have referred people to a company who essentially has taken money from innocent clients with promises of helping them with their credit. Well...this company is now no longer able to be reached at any of their contacts and has essentially taken the money and ran. Not sure when you dealt with them and when the last time you knew they "performed fine" for clients YOU referred them to but they have nothing but bad reviews and are unable to be contacted to right or come through on their empty promises.
Kyle July 12, 2013 at 01:26 PM
Rose, I'm glad I read your post. georrggin law, Ernest Georggin, Eric Phillips and Kylene Stemmons are about to be legally held responsible for their fraud. Allot of their victims have come out of the wood work and are demanding they be jailed. Please yelp and put Georggin law as the business and you will see the reviews. Also "ripoffreport.com" has many articles. One yelp review has the phone number of of an FBI agent named Alex and his phone number. Also Mari Payton from channel 7 news in San Diego is looking for victims to interview. She can be reached at cell 619-843-0510. Please call her as she is writing the story now. We are going to keep pushing until they are held accountable. Please email me at bajapj6@yahoo.com if you need more info.

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