Foreclosures and Evictions are Suspended

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We are in uncharted territories and our government wants to keep people in their homes during this national emergency. President Donald Trump announced today that the Department of Housing and Urban Development is suspending all foreclosures and evictions until the end of April.

“The Department of Housing and Urban Development is providing immediate relief to renters and homeowners by suspending all foreclosures and evictions until the end of April,” Trump said.

The Federal Housing Finance Agency also announced that it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days. This applies to homeowners whose single-family mortgage is backed by either Fannie Mae or Freddie Mac.

If you are a borrower affected by the coronavirus and now having difficulty paying your mortgage, it is highly advised to reach out to your mortgage servicer as soon as possible.

A good option is called payment forbearance, which would allow affected borrowers to suspend their mortgage payment for up to 12 months due to hardship caused by the coronavirus.

The housing industry is banding together to protect homeowners, renters, the housing economy and our professions. Please call our team at Focus Capital Funding if we can be of any assistance! We are all in this together.

Focus Capital 1-888-758-3004 

Info@focuscapitalgroups.com  
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Protect your Home and Family from COVID-19

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Go around your house and clean the following areas with disinfectant:

Tables

Desks

Counter tops

Nightstands

Hard-Backed Chairs

Stair Railings

Doorknobs

Light Switches

Keyboards

Remotes

Toilets

Sinks

Faucet Handles

Disinfect these surfaces with household cleaning spray multiple times a day and really scrub them.  Let the entire surface become visibly wet with cleaning product for at least 4 minutes, use force to physically wipe away the grime, and then let it dry on its own.  

Wear disposable gloves when cleaning and disinfecting surfaces, and then discard gloves after each cleaning.

From your hands to your face to countertops, soap and water kill the coronavirus. Soap removes the viral particles which is why it is highly recommended to wash your hands for at least 20 seconds at a time, many times a day.

Bleach is very effective at killing the coronavirus, as well as virtually every other germ, but difficult to work with and can create damage to paint and corrode metal. There are great disinfectant sprays that contain bleach, but if you decide to use straight bleach, mix it with water and wear gloves. The CDC formula for making a diluted bleach solution is 1/3 cup of bleach in one gallon of water or 4 teaspoons of bleach in one quart of water.

Here are the products NOT to use around your house to protect it from the coronavirus:

Hydrogen peroxide – it is not as strong as other products

Rubbing alcohol or vodka or any distilled spirits – these are only effective if you do not dilute them and they contain at least 70% alcohol

Distilled white vinegar – there is no evidence it is effective against coronavirus

Find the full article here on cleaning and disinfecting from the Centers for Disease Control and Prevention:   https://www.cdc.gov/coronavirus/2019-ncov/prepare/cleaning-disinfection.html
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Jumbo and Super Jumbo Loans

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A jumbo mortgage, also called a non-conforming mortgage, is a home loan used to finance properties that are too expensive for a conventional conforming loan. This loan, as implied by its name, is larger than other loan types. The maximum amount for a conforming loan, while it varies county to county, is $510,400, as determined by the Federal Housing Finance Agency (FHFA).

California is classified as a high-cost state as real estate is valued higher. California is classified as a high-cost state as real estate is valued higher. The expanded conforming loan limits in such high-cost states can be as high as $765,600 and anything that exceeds that amount is considered a jumbo loan.

  Super jumbo loans have loan limits even greater than jumbo loans with limits generally starting at one-million dollars. Jumbo loans can be used on almost any type of property to include a primary residence, secondary residence, vacation home, and investment property, while super jumbo loans are typically used more on a primary residence.

The limits of a jumbo and super jumbo mortgage are higher, thereby increasing the risk associated with lending the money. These larger loans are also riskier for lenders because they are not guaranteed by Fannie and Freddie, meaning the lender is not protected from losses if a borrower should default.

As a result of the high risk, understandably, both jumbo and super-jumbo loans have more rigid requirements compared to a conforming loan. You will need to provide proof you can support the monthly mortgage payments with your income, give the required down payment, and demonstrate through required documentation you are a solid borrower. 

While the standard lender is capped at giving at most two million dollars, Focus Capital Funding gives loans up to fifteen million dollars. If you are a borrower needing a jumbo or super jumbo loan for the purpose of your primary residence or an investment property, contact us today at Focus Capital: 1-888-758-3004

Info@focuscapitalgroups.com

FocusCapitalGroups.com

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Save Yourself from a Zombie Lien

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Most of us have never heard of a Zombie Lien. It is such a hidden disaster, it is not even explained in the online, very popular Wikipedia. When it strikes, we must first become aware of what it really means, how it happened to us and then figure out quickly how to save ourselves.

The name Zombie Lien is derived from a financial situation that was dead and buried only to come back to life.

A Zombie Lien can take place during a foreclosure when a title is not transferred out of the homeowner’s name and although the homeowner is not aware this happened they still have the legal obligation to pay certain debts and expenses like property taxes, HOA dues, and maintenance on the property. Debts associated with these responsibilities can go unpaid for years and then come back to haunt unsuspecting people who were unaware the foreclosure process was not completed.

One would think the bank would be legally required to inform the homeowner, but it is the responsibility of the homeowner to ensure everything was handled properly at the time of a foreclosure. These situations when a bank falls through often occur in low-income areas where the bank does not want to assume responsibility for the upkeep of the property and wants to save on taxes and other costs. Or, the bank decides not to follow through with the foreclosure because they already have too much inventory, the costs of foreclosing don’t justify completing the foreclosure, or maybe the paperwork was simply lost. In any case, people move out of their home during a foreclosure and assume the situation is in their past without realizing the nightmare can continue to haunt them.

Take steps now to make sure you, or anyone you know who could be affected, are not a victim. Confirm the title has been transferred out of your name after the bank held a foreclosure sale. To do so, go to the county recorder’s office in which the property is located and confirm a new deed has been recorded.

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Bridge the Gap with Bridge Loans

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John, a real estate investor, wishes to purchase an office building for a million dollars plus spend another million dollars to renovate it. He believes the building will be worth approximately $2.5 million after the renovation. John doesn’t have the $2 million it will take to make this happen right away and he doesn’t want to miss out on this incredible opportunity.

The clear solution is a bridge loan.

Bridge loans, also known as gap financing, swing financing, or hard money loans, tides you over financially during the gap in time between the purchase of a property and arranging its long-term financing. As the name implies, they serve to bridge the financial gap between current and future circumstances. A bridge loan can essentially allow you to buy a property quickly and without a contingency.

Using a bridge loan for speed to purchase a newly available property before the competition can get it is the most common example, but here are other situations:

  • Refinance an expiring balloon loan to position the property for a permanent loan with terms more favorable to the borrower

 
  • Down payment on the purchase of a new property your business is moving to and perhaps to pay off the remaining mortgage on the old property

 
  • To finance extensive renovation and then be replaced by long-term financing on the rehabbed property

 
  • By making timely bridge loan repayments, you might be able to boost your credit score in order to become eligible for long-term financing

The provider of a commercial bridge loan will approve borrowers based on the value of their collateral rather than on their creditworthiness. Therefore, a commercial bridge loan is easier to obtain than a standard mortgage. The proceeds from a commercial bridge loan can be applied to a property you already own, a property you wish to acquire, or both.

 
Focus Capital Terms for Bridge Financing
Loan Amount $1 million – $100 million
Interest Rates Starting at 5.25%
Loan Terms Up to 36 months
Loan-to-Value Ratio Up to 80%
In general, bridge loans are granted based upon the value of the property that serves as collateral rather than on the credit score of the borrower. Focus Capital has over 50 years of experience in commercial loans, with bridge loans being the most utilized. We deliver lending solutions that are quick, transparent and personalized in determining the best solution to get you the funding you need.  
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Your Vote Matters – Prop 13

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On June 6, 1978, Proposition 13 was a victory for the California taxpayer. But in every battle, there is a loser.

The vote was to limit property taxes. Before Proposition 13 passed, property taxes were based on the market value of your home verse the purchase price. Many homeowners were afraid they would not be able to afford to live in their home anymore because as their home value increased, they could not afford the resulting higher property tax bill.

Nearly two-thirds of California’s voters passed Proposition 13, reducing property tax rates on homes, businesses and farms by about 57%. California lost billions of dollars in tax revenue. It was the beginning of an anti-tax revolution. It forever changed the economic landscape of California. It changed how we pay for our schools, fire departments, police forces and libraries.

The support for passing Proposition 13 was led by retired businessman and anti-tax crusader Howard Jarvis. Proposition 13 is now embodied in Article XIII A of the Constitution of the State of California. The proposition decreased property taxes by assessing values at their 1976 value and restricted annual increases of assessed value of real property to an inflation factor, not to exceed 2% per year. It should be noted, however, the amount of tax you owe can still rise by more than 2% if the local tax rate in your area rises.

Property tax was the main source of revenue for public schools in California before Proposition 13. Today, about 20% of funding for California public schools comes from property taxes, a small fraction comes from the government, and the rest comes from the State. 

40 plus years later, Proposition 13 is on the March 2020 Primary ballot creating confusion among voters. It has the same number as Proposition 13 of 1978 but has nothing to do with the constitutional amendment on property taxes. It will not, in any way, change the original Proposition 13.  Voters in March will decide whether to allow the state to borrow $15 billion for school infrastructure.

Separately, in November, voters will vote on a request by state leaders to modify Proposition 13 of 1978. The partial Proposition 13 repeal called “The California Schools and Local Communities Funding Act of 2020” is to end the protections for commercial and industrial properties. This measure would allow these types of properties to be taxed at the full market rate, be reassessed every three years, offer protections for small businesses and would not affect residential properties. The initiative would raise an estimated $11.4 billion annually, with roughly half the money going to schools and community colleges.

How will you vote?
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6 Easy Ways to Prepare Your Home for Appraisal

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Ok, so you’ve made the decision to put your home up for sale or refinance your mortgage. After looking at websites like Zillow and Realtor.com, you have an idea of what your home is worth but feel it should appraise for much higher. The truth is that you’ll never have full control over what your home will appraise for, but you can take steps to increase your chance of pricing where you need to.

A property’s appraisal value is influenced by recent sales of similar properties and by current market trends. The home’s amenities, the number of bedrooms and bathrooms, floor plan functionality, and square footage are also key factors in assessing the home’s value. The appraiser must do a complete visual inspection of the interior and exterior and note any conditions that adversely affect the property’s value, such as needed repairs.

By preparing for the appraisal ahead of time, you’ll have a better chance of getting favorable results. After all, you want the most money for your home, right? Here are six simple ways to be sure that you get the best appraisal possible so you can enjoy all of the hard work you’ve put into your home.

  1. Be sure to have any safety equipment installed and working properly. These include smoke alarms, carbon monoxide alarms, and home security alarms, among other things.
 
  1. Clean & remove the any clutter. A clean home looks newer and more attractive to appraisers and buyers alike. Clear out the clutter. Wash down the walls and shampoo the carpet. Clean windows, shutters, and screens. Power wash decks, driveways and the exterior of your home.
   
  1. Pay attention to the yard. Mow your grass and trim your trees and shrubbery. Consider having dead trees removed, if possible, before your appraisal. Add some color with flowers, and in the winter, be sure to clear all ice and snow from walkways and driveways. Remove clutter from both the front and backyards, including stray toys, bicycles, and lawn furniture. Be sure to thoroughly weed flowerbeds and add mulch where applicable. Houses with high curb appeal receive better appraisals.
 
  1. Do some sprucing up. Install new light switch covers, shiny doorknobs or faucets. Replace old light bulbs to brighten a room. Repaint the walls and hang new curtains. Small things don’t add a lot in an appraisal, but they add up—and they also give the entire home the appearance of being modern and updated. Outdated décor can have a negative impact on an appraisal, while a more modern appearance can have a positive impact.
 
  1. Mind the $500 rule. Things like damaged tile floors, old wallpaper, a broken door, or an outdated bathroom vanity—usually take hits in $500 increments. As a general rule, it is safe to assume that small issues will take $500 hits in the total home value. If the appraiser finds several of these problem issues, the result can be thousands in lost home value. As a rule of thumb, fix problems immediately that would cost less than $500 to fix. This way you will recover that cost in your appraisal.
 
  1. Inform the home appraiser of any home improvements that have done on the home. Be sure to tell the appraiser about any improvements made in the home. New additions, replaced HVAC units, siding, gutters, a new roof, remodeled kitchens and updated bathrooms will all positively reflect on your appraisal.
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Millennials and the Future of Mortgage Lending

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For a majority of people, buying a home, or any type of real estate, for that matter, isn’t as easy as finding a great property and simply asking the bank for a loan. Obviously, there’s much more to it – especially in this day and age. Today’s mortgage and lending services demand ingenuity and flexibility to deliver customized solutions tailored to emerging markets.

Believe it or not, one of the fastest-growing markets of home buyers is Millennials. For years, it was assumed that they would turn away from suburban home ownership in favor of big city living and, presumably, renting. However, that prediction hasn’t come true: according to recent analysis by Realtor.com, not only are Millennials “taking over” the U.S. mortgage market, they also hold the largest share of new mortgages by dollar volume.

While their timelines might be a little different than previous generations, the fact is that their attitudes are surprisingly similar – and they’re actually buying more homes than you might think. Home ownership is part of the American dream and, at least for now, it certainly seems as though Millennials aren’t looking to change it anytime soon.

New data reveals that Millennials (aged 19-37, specifically) have outpaced both Gen Xers and Baby Boomers in mortgages, purchasing a larger share of them since early 2017. So how are Millennials able to purchase homes, especially when the prevailing thought is that 1) the cost of living is astronomically high and 2) members of this age group are simply bad at saving money?

According to a recent article on BusinessInsider.com, while Millennials may be buying cheaper homes than Gen Xers and Baby Boomers at a median price of $238,000, they’re putting down less money up front (the average down payment by a millennial homebuyer on a mortgaged home was 8.8% in December 2018). Paired with rising home prices, it’s clear that Millennials are taking on bigger mortgages, as a group, in order to put down roots. Their attitudes toward homeownership remain positive – they’ve just taken longer to get there.

Focus Capital can help the Millennial market “get there,” by offering services specifically tailored to the unique needs of this buyer group. Working alongside our clients, we aim to create alternative lending solutions for a variety of loans including jumbo, super jumbo, non-prime, and others for purchase and refinance transactions.

Want to learn more about how Focus Capital’s alternative lending solutions can help you finance the home of your dreams? Contact us today!

Source:

Business Insider

https://www.businessinsider.com/millennials-taking-over-mortgage-market-homeownership-2019-2

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