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.”