Category: ‘Foreclosures’

New HUD Budget Wording Threatens Reverse Mortgage Protections

August 15, 2017 Posted by kingcade

A slight change to the wording in a proposed HUD budget request could lessen the protections of reverse mortgages and increase the risk of foreclosure for some elderly homeowners.  The wording change affects 2-year-old provisions in federal housing rules that award certain rights and protections to the spouse of a borrower who takes out a reverse mortgage and later dies.

This wording change could increase the chances that the surviving spouse who did not sign the documents could lose their home in foreclosure.

Senators Marco Rubio (R.-Fla.) and Catherine Cortez Masto (D.-Nev.) sent a joint letter to Ben Carson, the secretary of the Department of Housing and Urban Development, and Mick Mulvaney, director of the Office of Management and the Budget, seeking clarity on the proposed wording in the budget request and asking whether the agency was seeking to reverse the earlier policy change.

The fact that there has been no response from HUD raises concern.  Before this change in policy two years ago, a surviving spouse who had not signed the mortgage document often had to pay what was left on the loan in full or was at risk of being evicted, due to the home going into foreclosure.

In the letter to the Department of Housing and Urban Development, the senators referred to the old policy as a “loophole” that had “compounded the stress faced by widows and widowers at a time when they were already grieving the loss of their spouse.”

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

 

 

New Underwriting Rules Make it Easier to Obtain a Mortgage with Student Loan Debt

August 9, 2017 Posted by kingcade

If you are struggling with student loan debt the prospect of ever qualifying for a mortgage may seem out of reach.  However, last week changes made to underwriting rules by Fannie Mae could make easier for borrowers with student loan debt to obtain a mortgage.

The new rule impacts borrowers with federal student loan debt who are currently enrolled in income-driven repayment plans.  An income-driven repayment plan sets your monthly student loan payment at an amount that is affordable based on your income and family size. Your monthly payments could be capped at 10% of your income.  If your discretionary income is low enough, your monthly payment could be as low as $0.

In order to qualify for the mortgage, a borrower must meet certain debt-to-income (DTI) requirements.

A statement from Fannie Mae says that reduced payment can be used, even when the payment is $0. According to Fannie Mae, “if the lender obtains documentation to evidence the actual monthly payment is $0, the lender may qualify the borrower with the $0 payment as long as the $0 payment is associated with an income-driven repayment plan.”

These new changes will allow more borrowers to qualify for a home, but there are exceptions.  These rules do not apply to all mortgages, and are specific to “agency-backed” mortgages that represent more than half of the mortgage market.  The changes do not apply to borrowers with private student loans.  As a general rule, student loan borrowers should max out federal loans before considering private loans.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

 

South Florida Foreclosures Down 33 Percent

July 26, 2017 Posted by kingcade

The increase in home prices and a stable job market have caused foreclosures to decline across South Florida.  The first half of this year, 12,463 homes were in some stage of foreclosure, down 33 percent from a year ago and 56 percent from the same period in 2015, according to ATTOM Data Solutions.

Miami-Dade, Broward and Palm Beach will close out the year with a fraction of the total that occurred during the 2009 peek of the housing crisis, when there were 172,854 properties in the process of foreclosure.  Statewide, foreclosures are down 34 percent from a year ago and 56 percent from 2015.

South Florida is on pace to finish 2017 with a foreclosure rate of about 1 percent.  Numbers have not been that low in Miami-Dade, Broward and Palm Beach since 2006.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

 

The “Mastermind” Behind a Foreclosure Rescue Scam has been Indicted by Feds

June 30, 2017 Posted by kingcade

Michael “Mickey” Henschel, accused of leading a foreclosure-avoidance scam that preyed on struggling borrowers, has been arrested and charged with 11 counts related to the scam that made him $7 million.  According to the indictment, Henschel owned a Van Nuys-based company that operated under several different names (including Valueline), and illegally marketed foreclosure and eviction-delay services to homeowners in default on their mortgages and renters facing eviction.

As part of the scam, Henschel and his co-conspirators allegedly convinced homeowners to sign fake grant deeds that supposedly showed that the homeowners conveyed an interest in their properties to fictional third parties. Henschel then allegedly filed bankruptcies in the names of fake people to activate the automatic stay provision of the Bankruptcy Code that stops a foreclosure sale.

Henshel charged large fees before agreeing to clear the title to the properties, in addition to the monthly fees paid for the illegal services. During the course of the scam, which ran from October 2010 through July 2013, Henschel and his co-conspirators allegedly collected more than $7 million for the illegal services.

Henschel has been charged with one count of conspiracy, eight counts of bankruptcy fraud and two counts of wire fraud.  If convicted, he would serve a statutory maximum sentence of five years in federal prison for each of the conspiracy and bankruptcy fraud counts, while the two wire fraud counts carry a statutory maximum sentence of 20 years.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Wells Fargo Accused of Making Improper Changes to Mortgages

June 20, 2017 Posted by kingcade

A new class action lawsuit accuses Wells Fargo of making unauthorized changes to home loans held by customers in bankruptcy.  The changes, which typically lowered monthly mortgage payments, appeared to benefit borrowers at first- but the details reveal the changes would extend the terms of the borrowers’ loans for decades, which means they would have monthly payments for far longer and owe the bank much more.

Any change to a payment plan for a person in bankruptcy is subject to approval by the court and the other parties involved.  But according to the lawsuit, Wells Fargo went ahead and made these changes to the home loans without such approval.

This puts borrowers in bankruptcy at risk of defaulting on the commitments they have made to the courts and could make them vulnerable to foreclosure. According to court documents, Wells Fargo has been putting through these un-requested changes to borrowers’ loans since 2015.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.