LA FIRE CRISIS- Stay Safe and Protect Yourself!
Our hearts go out to all those affected by the LA fires and pray for an end to this devastation. Words cannot even describe what a scary scene has unfolded in many parts of Los Angeles County. The mental anguish of not knowing what is going on in your own community can also take a toll. The Watch Duty fire app has become immensely popular as the best source of real-time fire information.
If you are affected by fires, you should immediately contact your mortgage company, insurance company, and County tax assessor. If possible, you should have correspondence in writing (through direct mail or email) and keep a date-sensitive record of your correspondence. While there are no laws stating that these companies have to offer you help, the reality is all should offer some form of forbearance, delaying payments without penalty until you can safely occupy your home. Furthermore, I’m sure in the coming weeks, there will be some declarations passed by state and local municipalities to deal with the devastation the fires have caused. If you need any help with this, please do not hesitate to contact us.
Medical Bill Credit Reporting
Under the good news category, the CFPB (Consumer Financial Protection Bureau) has passed a rule that would eliminate the reporting of medical debt in credit scoring and credit reports. It is estimated that this would remove $49 billion in medical debt from roughly 15 million Americans.
However, the rule is not set to go into effect for another 60 days and there is concern that the new Trump administration could veto this rule, as well as severely curtail the CFPB’s authority. While the CFPB, which was established in 2011 as a watchdog for the financial services industry, has come under fire for outgrowing its original mandate, this rule is a very positive step and should be allowed to pass.
I don’t think there is one person reading this that at some point hasn’t been totally frustrated by our complex medical system and trying to deal with medical insurers. This rule would go a long way in preventing abuses my medical insurers.
Investment Property Loans
It has never been easier to buy an investment property, thanks to debt service coverage ratio (DSCR) loans for residential properties. If the property cash flows (i.e. the monthly rent is more than the principal, interest, taxes and insurance on the property), then you can obtain a loan without providing tax returns &/or other forms of income documentation. If you are selective, there are definitely deals out there as the competition is a lot less in this higher rate environment. Buy the asset now, refinance when rates come down.
