Category: ‘Foreclosures’

Changes to Reverse Mortgage Rules for Retirees

October 13, 2017 Posted by kingcade

Starting this month, some major changes are coming to the HECM reverse mortgage industry as the government aims to strengthen the long run projections of the program. The Home Equity Conversion Mortgage (HECM) is Federal Housing Administration’s (FHA) reverse mortgage program which enables you to withdraw some of the equity in your home.

According to HUD Secretary Ben Carson, “We have a responsibility to make changes that balance our mission with our responsibility to protect taxpayers.  Furthermore, Carson noted that the changes are “needed and prudent steps to put the HECM program on a more sustainable footing so that it can remain a resource for senior borrowers.”

Here are the three major changes that have taken effect October 2017:

  1. Upfront HECM mortgage insurance premiums will be increased for certain borrowers, but lowered for others, as compared to the current system.
  2. The ongoing mortgage insurance premiums will be lowered, bringing down the total compounding rate cost for most borrowers. This could put rates more in line with the rates of traditional mortgages and the rates of home equity lines of credit.
  3. Principal limit factors will be changed, which impacts the amount of home equity that will be available for homeowners to access at various ages under the HECM program.

Click here to learn more about the specifics of each of these three major changes and how each one will affect borrowers.

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 McMaken website at www.miamibankruptcy.com.

New Mortgage Demand Accompanied by Fraud Risks

October 11, 2017 Posted by kingcade

An increase in mortgage demand brings with it an increase in fraud risk, according to CoreLogic.   Analyzing only the data on purchase applications, from Q2 2016 to Q2 2017, the proportion of purchase transactions within the group increased from 55% to 66% of applications.

As a whole, during the second quarter of 2017, an estimated 13,404 mortgage applications or 0.82% of all mortgage applications contained fraud. This is compared to the second quarter of 2016 when mortgage application fraud was found on 12,718 applications, or 0.7% of all applications.

So where is the increase in fraud risk mainly coming from? CoreLogic identified the top three mortgage fraud indicators that are on the rise.

  1. Occupancy fraud risk

CoreLogic identified this as the No. 1 fraud risk.  Occupancy fraud occurs when the mortgage applicant deliberately misrepresents their intended use of the property (i.e. – primary residence, secondary residence, or investment property).  From the second quarter of 2016 to the second quarter of 2017, the occupancy- fraud indicator grew 7%.

  1. Transaction fraud risk

Transaction fraud risk increased 3.9% when compared to the same quarter last year.  This type of fraud occurs when the nature of the transaction is misrepresented, such as undisclosed agreements between parties and falsified down payments.

  1. Income risk fraud

Income fraud rounded out the top three and includes misrepresentation of the existence, continuance, source, or amount of income used to qualify for a mortgage.

Click here to read more on this story.

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 McMaken website at www.miamibankruptcy.com.

Foreclosure Increase in August Double the Norm

October 9, 2017 Posted by kingcade

The rise in foreclosure filings for August was more than double the norm, according to Attom Data Solutions.

“There is often a seasonal monthly increase in foreclosure activity in August paralleling the seasonal slowdown in the overall real estate market, but the 14% month-over-month increase nationwide this August is more than twice the average 6% seasonal increase in August over the previous 10 years — the highest in fact since a 37% month-over-month increase in August 2007,” according to Attom Data Solutions Senior Vice President Daren Blomquist.

There were 75,115 properties in some stage of foreclosure (including default notices, scheduled auctions and bank repossessions) in August, compared with 66,112 in July and 95,132 in August 2016.

The five states with the most foreclosure activity were Florida with 8,237 filings, California with 7,479, New Jersey with 5,721, Illinois with 5,137 and Ohio with 4,540.

Click here to read more on this story.

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 McMaken website at www.miamibankruptcy.com.

Millions of Dollars in Foreclosure Assistance Squandered by State Government Agencies

October 2, 2017 Posted by kingcade

According to a new report, state agencies “lumped unnecessary expenses into permitted expenses categories, elevating the risk of fraud, waste, abuse and over-payment throughout the (Hardest Hit Fund) program.”

The Hardest Hit Fund was created in 2010 to assist state housing finance agencies help struggling homeowners facing foreclosure.  More than $7.6 billion was designated for low-income homeowners with the Department of Treasury committing an additional $2 billion to the fund last year.

Any expense the state agencies charged to the program were supposed to be essential to easing loan modifications, according to federal guidelines. The investigation and recent report from the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), found that the 19 housing finance agencies charged $3 million in wasteful and unnecessary spending.

Some of the charges were relatively small, such as TARP gift cards for housing finance employees, balloons and even a TARP piñata. But other charges were unnecessary and extravagant.  Every dollar spent on these items was one less for people desperate to save their homes.

Among the abuses covered in the 2017 SIGTARP audit report for the State of Florida include:

Florida Housing Finance Corporation. At the same time the Florida agency was billing TARP for gifts and $106,774 in bonuses to employees, it was denying TARP relief to homeowners at record rates, according to the report. The agency apparently processed only half the homeowners with incomes under $30,000 who were potentially eligible for loan modifications.

Click here to read more on this story.

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 McMaken website at www.miamibankruptcy.com.

 

Lennar Offers Millennials Unique Mortgage Opportunity that Helps Pay off Student Loan Debt

September 29, 2017 Posted by kingcade

It’s no surprise that the amount of student loan debt many Millennials have, has been holding them back from purchasing a home.  A National Association of Realtors (NAR) study showed that only 20% of Millennial respondents own a home, while the majority of them carry an average student loan balance of $41,200, which exceeds their average annual income of $38,800.

Among the Millennials surveyed who do not own a home, 83% said that their student loan debt affected their ability to purchase a home.

Eagle Home Mortgage, a mortgage lender and a subsidiary of Lennar, announced this week that it will offer a new mortgage program that will help home buyers pay off their student loan debt. Eagle Home Mortgage’s Student Loan Debt Mortgage Program offers borrowers as much as $13,000 that can be used to pay off student loan debt.

Here are some of the program’s terms and conditions:

  • Borrowers who use Eagle Home Mortgage’s Student Loan Debt Mortgage Program can direct up to 3% of the purchase price to pay their student loans, but only if they purchase a new home from Lennar.
  • Borrowers must meet credit and income requirements when using the Student Loan Debt Mortgage Program, and can qualify for loans with down payments as low as 3%.
  • The program is not intended for parents who took out loans to finance their child’s education.
  • The program’s maximum loan amount is $424,100, but Lennar said that in addition to the 3% contribution to student loan balances, buyers may also be eligible for other incentives – such as credits toward closing costs.

According to Lennar, the homebuilder will contribute up to 3% of the purchase price of a new home to be used to pay down student loans incurred while attending universities, colleges, community colleges, trade schools and other certificate-granting programs.  The Student Loan Debt Mortgage Program is being offered on a trial basis with new Lennar homes nationwide.

Click here to learn more about the program.

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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.housingwire.com/articles/41396-lennar-targets-millennials-with-mortgage-that-pays-off-student-loan-debt