Credit, Foreclosures, Timothy Kingcade Posts

Government Relaxes Mortgage Down Payment Standards

This week, Federal regulators proposed a new rule that would make mortgage lending standards less restrictive. The proposed Qualified Residential Mortgage rule was supported by both consumer advocates and mortgage industry members- an otherwise rare occurrence- largely because it eliminates much stricter down payment rules that the previous version of QRM would have created.

The Consumer Financial Protection Bureau’s Qualified Mortgage (QM) rule requires lenders to underwrite home loans based on the borrower’s ability to repay the loan, a step the agency took to combat some of the bad lending practices that led to the housing crisis.

Under the CFPB’s QM rule, borrowers must provide income documentation that they can repay the loan, and that their debt-to-income ratio does not exceed 43 percent, among other requirements. It does not, however, have any rules requiring lenders to ask for a set down payment amount.

QRM would have required lenders to demand a 20 percent down payment from borrowers. The rule was intended to prevent unqualified borrowers from taking out a mortgage they can’t handle, but housing advocates and mortgage industry members argued that it instead prevented too many qualified and responsible low- to middle-income borrowers from taking out a mortgage.

According to some housing experts, aligning the QRM rule with the QM rules will allow more American families to become homeowners and ensures that housing markets can remain strong in the future. This is especially important for communities that are still rebuilding from the foreclosure crisis.

The National Association of Realtors President Gary Thomas called it a “a victory for homebuyers and the future of homeownership in this country.”

Click here to read more the new rule that would make mortgage lending standards less restrictive.

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, www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

A Roadmap out of Bankruptcy

People who file for bankruptcy can sometimes feel ashamed, hopeless and overwhelmed. But it may be a comfort to know that you are not alone. According to the American Bankruptcy Institute, the number of July bankruptcy filings came to 87,684.

Below are eight tips on how to recover after filing for bankruptcy:

1.) Address what caused the bankruptcy. This will help you avoid ending up in the same predicament five years later. Set a new budget and look for different employment opportunities.

2.) Identify your goals. These can include paying off old debts or rebuilding your credit score. Whatever these may be, it’s important to write down these goals and work towards them.

3.) Check your credit score. Inaccurate information on credit reports is becoming more common and can affect everything from qualifying for the best mortgage rates to getting hired for that dream job you recently applied for. Simply removing incorrect information from your credit report can oftentimes improve your score.

4.) Gradually re-establish credit. Taking out two credit cards and paying them off monthly can help rebuild your credit score. After seven to 10 years of doing this, your score could look as good as new!

5.) Find a new credit card issuer. While lenders are sometimes hesitant to give credit to people that have recently filed for bankruptcy, there are some that are willing. The terms may not be ideal at first, but these new accounts will help rebuild your credit over time.

6.) Avoid unfair deals. Predatory lenders oftentimes target the most vulnerable groups, including recent bankruptcy filers. You should be weary of payday loans and rent-to-own deals that carry high interest rates.

7.) Seek support. Surround yourself with positive people following your bankruptcy. Online communities of people going through the same thing can offer much needed support.

8.) Think positively. Most people’s credit improves after filing for bankruptcy. Many of the clients I help, their only regret is that they didn’t file sooner. While bankruptcy will stay on your credit report for up to 10 years, many creditors are more than willing to lend you credit after you have filed for bankruptcy.

Click here to read more on a roadmap out of bankruptcy and into recovery.

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.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

FHA Shortens Waiting Period for Borrowers Who Experienced Foreclosure or Bankruptcy

The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu or short sale to reenter the market in as little as 12 months. Previously, borrowers who experienced a foreclosure had to wait at least three years before getting a chance to be approved for an FHA loan. To qualify for the more lenient approval process, documents must show ‘certain credit impairments’ were from loss of employment or loss of income that was beyond the borrower’s control. The lender must also verify the income loss was at least 20 percent for a period lasting for at least six months.

Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling. Housing counseling must come from a HUD-approved housing counseling agency and be completed at least 30 days but no more than 6 months before applying for a loan. Recovery from an economic event involves reestablishing ‘satisfactory credit’ for at least 12 months. The criterion for ‘satisfactory credit’ includes 12 months of good payment history on either a mortgage, rent or credit card account.

This more lenient approval process applies to case numbers assigned on or after August 15, 2013 and is effective through September 30, 2016.

Click here to read more on the FHA’s more lenient approval process allowing borrowers to reenter the housing market in as little as 12 months.

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, www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

How Bankruptcy Could Help Solve the Student Loan Debt Crisis

Last week, President Obama introduced a proposal that would give colleges federal money based on performance and affordability to students. This so called ‘ratings system,’ Obama said would require accountability at colleges across the country in an effort to curb the escalating costs of student loans.

However, experts say there may be another more effective way to solve the student loan debt crisis: bankruptcy law. Under the current system, student loans are near impossible to get discharged through bankruptcy, unlike most other forms of unsecured debt, such as medical bills and credit card debt. Legal experts say this is creating a generation of Americans who are unable to get out from under the crushing weight of college debt and falling off the economic grid.

The Consumer Financial Protection Bureau found that total student loan debt is approaching $1.2 trillion, which would exceed credit card debt by more than 28 percent. According to a recent study done by the Center for American Progress, forty-five percent of all American families now have student loans.

With unemployment high among recent college grads, default rates on these student loans have risen as well. The economy is different today and college grads are leaving school with $50,000 to $100,000 in debt unable to find jobs. Experts say allowing college graduates to discharge their student loan debt in bankruptcy will allow them to have a ‘fresh start’ and return to being participants in the economy.

The ability to discharge student loans in bankruptcy has become increasingly difficult over the years to the point where now the borrower has to prove that any student loan, even a privately issued one, would cause an “undue hardship” to them in order to get it discharged. Another hurdle is that in order to discharge a student loan debt, a debtor must file a separate action and argue in front of the bankruptcy court, a process that usually requires an attorney and additional money.

Experts have proposed a number of fixes that would help out borrowers stuck under unmanageable debt burdens. One proposal discusses allowing all private loans to be dischargeable in bankruptcy. Another discusses loan forgiveness programs — in which a borrower repays an affordable amount over 20-25 years before getting the rest discharged. Another proposal allows bankruptcy courts to value a debtor’s student loan at its fair market value, which is what another investor would be willing to pay to buy the loan off the original lender, and discharge anything above that value. A similar process is currently available to some debtors on their mortgages in bankruptcy.

Experts on the topic still feel it is going to take a lot more than the President’s recent proposal and bankruptcy to fix the system. It’s really going to come down to looking at institutions, both for profit and nonprofit, who are doing innovative things to get students to graduation and employment.

Click here to read more on how bankruptcy could help solve the student loan debt crisis.

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

President Obama’s New ‘Ratings System’ and what it means for Student Borrowers

President Obama recently went on a two-day bus tour to push a new proposal aimed at creating a college ratings system that evaluates schools on a number of criteria including tuition, graduation rates, debt of graduates and alumni’s earnings.

He claims the ratings system will make college more affordable since federal aid will be allocated based on the results of the ratings.

College affordability is something President Obama has stressed will help restore the middle class since his election into office. The student loan debt epidemic is affecting all age brackets and more than 38 million Americans.

On August 9, the president signed the Bipartisan Student Loan Certainty Act, which ties interest rates on Stafford and PLUS loans to the fluctuations of the 10-year Treasury bond. But while the passage of this new law, which Republicans and Democrats claim will help students, is temporarily lowering interest rates, in five years, it is estimated that interest rates will actually end up being higher than before the bill was signed. According to the Congressional Budget Office, it will make the government an extra $715 million.

The CBO reports that the government is already making an estimated $184 billion from student loans — and this new bill increases the number to a staggering $184,715,000,000.

Click here to read more on Congress’ latest student loan bill and the President’s new ratings system.

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.

Bankruptcy Law, Timothy Kingcade Posts

Kodak’s New Strategy after Emerging from Chapter 11 Bankruptcy

A Manhattan bankruptcy judge recently approved a plan for Eastman Kodak to emerge from Chapter 11 as early as September 3rd, 2013. The new company will be vastly different from the once dominant film company that virtually invented amateur photography.

Manhattan bankruptcy judge Allan Gropper, in approving the plan, called it a necessary preliminary to Kodak regaining what he called “its position in the pantheon of American business.”

After decades of seeing its traditional business diminish as a result of foreign competition and digital photography, Kodak was forced to seek bankruptcy protection. Kodak said in a statement that it is transforming itself into a seller of digital printing services to other businesses. That does not mean the company’s traditional consumer products will disappear; they will now be made by another entity, owned by a U.K. pension fund. Kodak is selling its consumer film and camera business to the workers’ pension fund to settle $3 billion worth of pension obligations to its former workers in the U.K.

Click here to read more on Kodak’s new strategy after emerging from Chapter 11 bankruptcy.

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.

Foreclosures, Timothy Kingcade Posts

South Florida Home Sales- Prices Rise by Double Digits in July

Sales volume in South Florida today is matching the 2005 housing boom, although the median prices are far lower. More single-family homes were sold in July in Miami-Dade County than at any time since the peak of the housing boom. Supply and demand is what is driving the market. Supply is lacking and demand is high as homebuyers are trying to capitalize on the low mortgage interest rates.

The median price of a single-family home in Miami-Dade soared 25.7 percent in July to $230,000 from $183,000 a year earlier, the Miami Association of Realtors recently reported. Single-family home sales in Miami-Dade jumped 27.3 percent in July to 1,227 closings from 964 a year earlier. That marked the highest sales volume since 2005, when the median price was $351,200.

Miami-Dade has seen 20 consecutive months of price increases in both single-family homes and condominiums. Experts attribute the increase to a heightened demand and the low mortgage interest rates being offered. However, interest rates are steadily rising as the housing market is gaining momentum and posting dramatic gains. The average rate on a 30-year, fixed-rate mortgage is 4.74 percent, up more than a full percentage point from 3.61 percent in early May, according to HSH.com.

Click here to read more on South Florida home prices rising double digits in July.

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, www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

How to Get your House for FREE

Several hundred to possibly thousands of Florida homeowners will have an opportunity to own their house free of charge as a result of a Florida law. The statute is common contract law that says a person has five years to sue on a debt, with the right to collect that money expiring at the end of the time period. The most common scenario of how this occurs is: The bank filed the initial foreclosure, then dismissed it for whatever reason and failed to refile during the five-year period. It is possible that cases currently in the system, and older than five years, could get dismissed and then will not be refiled because the allotted time has run out.

In Palm Beach County, 30,100 foreclosures were filed in 2008. There are about 1,550 still in the system, which are five years old or older.

But it is not just age that determines whether the statute of limitations will grant victims of foreclosure a free house. It is also critical to know when the clock started ticking. Most attorneys agree that it is at the time of “acceleration” — when the bank decides after a series of missed payments that the entire loan amount is due. That typically happens when the foreclosure is filed with the court.

Homeowners cannot just assume they will be protected by the statute. If a lender files after the deadline passes, and the borrower does not respond and defend the case, the bank could win despite missing the deadline. Several unprecedented events during Florida’s housing crisis have increased the chances that borrowers will benefit from the five-year statute of limitations on foreclosures. Some of these events included the hundreds of thousands of foreclosure documents filed with Florida’s courts that were either flawed or fraudulent along with sloppy paperwork signed by countless numbers of robosigners.

In a recent South Florida case, a ‘legal misstep’ was to blame for a foreclosure victim being awarded her multi-million dollar Boca Raton waterfront mansion, which had been in foreclosure since 2008. The bank’s attorneys were forced to voluntarily dismiss the case that went to trial on July 25, 2013.

Click here to read more on the possibility of Florida foreclosure victims getting their houses for free.

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, www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

New Law Causes Decrease in Foreclosures in Palm Beach County

It has been reported that foreclosure filings are down in Palm Beach County likely due to a new law that is making it more difficult for banks and lenders to initiate foreclosures. The new state law (Section 702.015, Florida Statutes) requires plaintiffs to acknowledge in their foreclosure complaint that they have all the documents necessary to prove the case against the homeowner.

The latest statistics reveal several interesting trends:

• The number of new foreclosure filings in Palm Beach County decreased dramatically in July.

• Since the new foreclosure filing requirements took effect July 1, 2013, there were 387 new foreclosures, a 61.3 percent decrease from 1,001 new foreclosures in June, and a 68.3 percent decrease from 1,220 cases filed in July 2012.

• The new cases filed in July represent the lowest number of new foreclosures filed with the Clerk & Comptroller, Palm Beach County, since July 2006, when 392 foreclosures were filed.

• The number of new mortgages and deeds recorded in Palm Beach County during July remained higher compared with the previous year, but lower than the totals recorded in June. There were 6,985 deeds recorded in Palm Beach County in July, down 7.5 percent from 7,548 deeds recorded in June, but up 44.7 percent from 4,828 deeds recorded in July 2012.

Clerk Sharon Bock attributes the new law to the declining number of foreclosures, which demonstrates that banks are acting with an abundance of caution before they bring forward foreclosures cases in Florida.

Click here to read more on the recent decline in foreclosures in Palm Beach County.

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, www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Who the New Student Loan Act Really Benefits

You may be surprised to hear who the Bipartisan Student Loan Certainty Act of 2013, officially signed on August 9, by President Obama is actually benefitting. According to a recent story in U.S. News & World Report, the Congressional Budget Office projects the new law will increase government profits on student loans through 2023 by $715 million! The new law offers a moderate amount of help to current students at the expense of future ones and simply does not address the fundamental problem in the student loan system- the enormous profit the federal government is making at the expense of students.

The amount added to subsidized and unsubsidized direct loans for undergraduates is 2.05 percentage points. Unsubsidized direct loans for graduate and professional students have 3.6 percentage points added to the 10-year Treasury note rate and 4.6 percentage points are added to PLUS loans for graduate and professional students. By itself- when interest rates are low- this is not too bad.

Unfortunately, the new law combines this market rate with different – and much higher – interest rate caps. Undergraduates can now pay a maximum interest rate of 8.25 percent – compared with the previous maximums of 6.8 and 3.4 percent for unsubsidized and subsidized direct loans. When interest rates go up, which they likely will in the near future, students will pay much higher rates.

Click here to read more on the new student loan act and who it is actually benefiting.

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.