Archive for: ‘April 2013’

3 Reasons the Housing Market Recovery Might Not Last

April 23, 2013 Posted by kingcade

The housing market has made a big comeback this year! Home prices have increased approximately 8 percent and interest rates have hit record-lows. However, some experts worry that the housing market will crash just as quickly as it has surged.

Below are three main reasons industry experts worry the recovery might not last.

1. Investors are leading the housing market recovery. Investors have been taking advantage of low interest rates by buying up a huge portion of the real estate inventory. However, when prices begin to rise, economists believe that investors will likely pull back. Many believe an investor-driven boom led to the original housing bubble.

2. The economic recovery is not strong enough, yet. There are many factors within the economy that can still hurt the housing market, such as employment. After gaining some momentum during 2012, the job market has been showing signs of weakness in recent months. Once the job market picks up, the housing market should gain some strength.

3. Government cuts will hurt homeowners. The housing market recovery will be greatly affected by the $85 billion worth government spending cuts. The cuts include unpaid days off for federal workers, cuts in unemployment compensation and decreased military spending. All of which will lead to job and income losses.

Click here to read more on the three reasons why the housing market recovery might not last.

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 website, Kingcade & Garcia, P.A.

Top 10 Misconceptions About Bankruptcy

April 22, 2013 Posted by kingcade

There are many laws within the Bankruptcy Code that are often misunderstood. Below are the top ten misconceptions about bankruptcy.

1. You must be completely broke to file for bankruptcy. Filing for bankruptcy protection does not necessarily mean that you are broke; it can mean that you cannot pay your bills as they come due. However, many debtors wait until they are flat broke to file for bankruptcy protection. This delay limits your options of reorganizing your finances and being able to keep part or all of your property. It is better to file before you are “flat broke.”
2. If you file for bankruptcy protection, you will not qualify for credit in the future. Your bankruptcy will appear on your credit report for up to 10 years. Chances are, if you have filed for bankruptcy, your credit score has already suffered. Therefore, filing for bankruptcy may be the best way to raise your credit score, again. Once you file for Chapter 7 bankruptcy, you will receive a discharge on most debts. Once your debts are discharged, you can start working to raise your credit score, again.
3. If you file for bankruptcy, you cannot buy a house. Mortgage lenders may be hesitant to loan you money to buy a house within the first couple of years after filing. However, if you work to raise your credit score and practice good bill paying habits, you are likely to be approved. Your lender may charge you higher interest rates and require personal guarantees. If you can fund a sufficient down payment, you are likely to be approved for a mortgage loan.
4. If you file for bankruptcy, you will lose your house. Whether or not you are able to keep your home will be determined by the amount of equity you have in your home. When you file for bankruptcy, you are allowed to keep some property, called exempt property. Your home will be exempt from liquidation if it does not have any non-exempt equity.
5. Taxes cannot be discharged in bankruptcy. Some taxes are dischargeable in bankruptcy, such as personal income taxes that are more than three years old.
6. Student loans are nondischargeable. In most bankruptcy cases, student loans cannot be discharged. However, if the debtor can prove certain hardship, student loans can be discharged.
7. If you file for bankruptcy, you can leave out certain creditors. The Bankruptcy Code serves the purpose to treat similarly situated creditors equally. If you do not list a creditor in bankruptcy and decide to pay the creditor, you are technically prejudicing the other creditors. The court considers this fraud and you are at risk of losing the discharge and possibly facing jail time and fines.
8. Family members who loaned the debtor money will lose out. You must list all creditors in the bankruptcy; however, you can repay certain creditors after bankruptcy is filed. This practice is referred to as a reaffirmation agreement. All reaffirmations are subject to court approval. In most cases, debtors agree to pay back a debt they have no legal obligation to pay in order to maintain an existing relationship.
9. Signing an agreement stating that a debt cannot be discharged in bankruptcy makes the debt nondischargeable. These bankruptcy clauses are unenforceable and are used as a scare tactic.
10. You may lose your job if you file for bankruptcy. If an employee can prove they were fired solely because he or she filed for bankruptcy, the employee can sue the employer.

Click here to read more about the top ten misconceptions about bankruptcy.
http://www.nysscpa.org/cpajournal/2005/505/perspectives/p18.htm

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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.

Postcard Alerts of Foreclosure Cash Could Be Ignored

April 19, 2013 Posted by kingcade

Beginning this month, hundreds of thousands of Floridians are expected to receive foreclosure-restitution checks through federal agreements with banks. The fear is that the letters might be mistaken for a scam or junk mail and will be thrown out. It is estimated that approximately $3.6 billion will be awarded to 4.2 homeowners nationwide who were facing foreclosure in 2009 and 2010. Those who are eligible for the cash should have received a postcard in late March alerting them that they would be receiving a check worth between $250 and $125,000. The postcards were sent out by Minneapolis-based Rust Consulting, the firm contracted by federal regulators to disburse the checks. Homeowners have been wary of the postcards and checks due to already being overwhelmed with foreclosure-related mailings.

The Office of the Comptroller of the Currency offered agreements with 13 financial institutions to compensate for foreclosure-related abuses and replace the Independent Foreclosure Review. Homeowners were asked to apply to have their foreclosure inspected and receive compensation based on the findings. However, few people signed up for the review. In November of last year, approximately 3.8 percent of Floridians who were sent letters about the program had applied. This proves that homeowners are so uneasy about anything foreclosure-related, they are willing to miss out on compensation for foreclosure abuse.

Click here to read more about the postcard alerts of foreclosure checks being sent to Floridians throughout the month of April.

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 website, Kingcade & Garcia, P.A.

New Foreclosure Bill – Good for Banks, Bad for Homeowners

April 18, 2013 Posted by kingcade

A bill to speed up the Florida foreclosure process is headed to the House floor this legislative season. However, consumer advocate groups believe HB 87 will favor banks rather than homeowners. According to Rep. Cynthia Safford, ‘the bill diminishes the rights of homeowners and consumers.’ This bill is the Legislature’s third attempt in three years to address the backlog of foreclosures in Florida. A Senate companion bill is also moving through the committee process. This bill forces banks to disclose the correct documents and also shortens the statute of limitations for post-foreclosure lawsuits against homeowners.

Consumer advocates are pointing out some of the other provisions that are a bit more controversial. The bill states that homeowners cannot get their home back after a fraudulent foreclosure if it has been sold to another person. Another controversial point in the bill is that it would allow condominium associations to speed up the foreclosure process on homeowners who have not paid their dues. Florida has the largest foreclosure inventory than any other state in the nation. Currently there are more than 300,000 homes in the process of foreclosure. Additionally there are hundreds of thousands that are at risk of foreclosure.

Click here to read more on HB 87 and what it can mean for you.

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 website, Kingcade & Garcia, P.A.

Beware the Dangers of Payday Loans

April 17, 2013 Posted by kingcade

Financial mistakes can have lasting effects that may take you years to recover from. Overspending on shopping trips, overusing credit cards and taking out payday loans are a few of the most common mistakes Americans make with their finances.

What is a Payday Loan?

Payday loans are also known as cash advances or paycheck advances. They are usually short-term loans that you must repay by the time you get your next paycheck. The lender charges you a fee, plus interest on the amount you borrow. Lenders do not typically run a full credit check for payday loans; another reason why they are becoming popular. Since the lender is taking a very large risk by loaning you the money, payday loans tend to have extremely high interest rates.

Disadvantages of Payday Loans

Some states do not allow payday loans at all. Of those that do, these states limit how high the annual percentage rate (APR) can be. Other states do not set restrictions on payday loan APRs. In these states, the APR can be anywhere from 300% to 900%. Although it is a very easy and fast way to get cash, you should be very careful when taking out a payday loan because you might end up paying more in interest than you originally borrowed.

When you take out a payday loan, you write a check for the amount borrowed plus a fee that will be cashed by the lender on your next payday. If you cannot repay it on that day, it rolls over to the following payday. Many borrowers get into trouble this way. If you continue to let the loan rollover, your debt substantially grows due to your inflated APR.

Alternatives to Payday Loans

Credit union loans – your local credit union may offer small, short-term loans to members.

Small bank loans – many small banks offer alternatives to those looking into payday loans.

Advances from employers – it may serve your best interest to ask for an advance from your employer instead of getting a loan that will accrue interest.

Borrow from family or friends – although it may put a strain on your relationship, this can be your best option because they will likely be lenient on the repayment date.

Click here to read more about the dangers of payday loans.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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.