Foreclosures, Timothy Kingcade Posts

Miami Mortgage Fraud Scheme Costs FHA $50 Million

Greater County Mortgage Bankers owner Hector Hernandez was indicted along with seven of his employees for a $50 million mortgage fraud scheme.  Wire fraud charges were filed against developers Armando Bravo and Aleida Fontao.

The indictment states that the defendants secured fraudulent mortgages through the Federal Housing Administration from 2006 through 2008.   The loans included exaggerated income and financial statements.  Hernandez, the owner of the mortgage company allegedly used false documents such as phony earning statements to qualify borrowers, who otherwise would not have qualified.

Hernandez was also accused of giving borrowers kickbacks after closing on condominiums.  The majority of the Great County loans defaulted and went into foreclosure.  The scheme cost the FHA over $50 million, as these loans were guaranteed.

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.

Related Resources: http://www.bizjournals.com/southflorida/blog/morning-edition/2014/08/mortgage-company-owner-real-estate-developers.html?ana=e_sflo_rdup&s=newsletter&ed=2014-08-29&u=um2Eyo72dYSImvglWn/0xO6wsIE&t=1409325203

 

Foreclosures, Timothy Kingcade Posts

Miami Heat Star Dwayne Wade’s Suburban Home Facing Foreclosure

NBA star Dwayne Wade’s former suburban Chicago home is facing foreclosure. According to TMZ, the Miami Heat guard is worth approximately $100 million, and brings in roughly $30 million a year.   So you are probably wondering, why the foreclosure?  Wade lived in the 7,800 square foot home with his wife and children until 2007, when the couple divorced.  Just last year Wade settled with his ex-wife for $5 million and relinquished ownership of the home.

His wife receives $25,000 a month in spousal support. After being awarded the house last year, Wade’s ex-wife stopped making payments on the mortgage and this month the bank filed a foreclosure notice for the $225,000 balance. Since Wade’s signature was on the original mortgage papers, the bank is asking him to pay up, but the NBA star’s attorney has stated that his client has no further payment obligations on the home.

The six bedroom, seven bathroom home is currently listed at $1.2 million.  The South Holland home sits on a 3.2 acre lot, has a sports theater room, exercise room, a sauna, a pool and includes a two bedroom guest house. The listing also mentions that “some custom furniture may be for sale by the owner.”

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.

Related Resources: http://chicago.curbed.com/archives/2014/08/21/buy-nba-star-dwyane-wades-foreclosed-home-for-12m.php

Foreclosures, Timothy Kingcade Posts

Lawsuit aims to stop collection attempts on mortgage debt from old foreclosures

A lawsuit filed last week in federal court is hoping to block collection attempts on unpaid mortgage debt from foreclosures that took place years ago. A deadline change in the state’s law started a mass filing this year of deficiency judgment claims against defaulted borrowers, including at least 110 lawsuits in Palm Beach County since June 1.

The problem is that the claims violate the Fair Debt Collection Practices Act in cases where the suit is filed in Florida, but the borrower has since moved out of state. There is a class action lawsuit being sought in the Middle District of Florida on behalf of Massachusetts resident Richard Simpson, who lost a Jacksonville home to foreclosure in 2009.

Simpson was sued for a $26,651 deficiency in February, but many of the claims are for amounts greater than that. It is typically the difference between what the home is sold for at auction and the remaining mortgage debt.

The goal is to sue the out-of-state defendants who have just 20 days to respond, and then get a default judgment when they do not respond on time. Approximately 10,000 deficiency judgment claims have been filed in Florida.

Many homeowners are taken completely by surprise, unaware that the banks have a right to do this. Deficiency judgments used to be so rare that underwater homeowners simply took the chance and walked away, thinking the worst thing that could happen is that they lose their home.

A change in Florida law that went into effect July 1, 2013, reduced the timeline that banks and mortgage companies have to file for a deficiency judgment from five years to one year after a foreclosure is final, which is when the home is sold at auction.

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.

Related Resources: http://www.mypalmbeachpost.com/news/business/real-estate/lawsuit-aims-to-stop-collection-mortgage-debt-from/ng464/#5234aa19.3828699.735463

Bankruptcy Law, Credit, Timothy Kingcade Posts

New FICO Model Could Boost Credit Scores for Millions

FICO, the company responsible for the most widely used credit score in the U.S. announced this month that its newest scoring model will differ drastically from past versions. Known as FICO 9, the new model will take effect in fall 2014. FICO 9 will differ from FICO 8 in two major ways:

1.) It will differential between medical and non-medical bills that have been turned over to collections. Medical bills will no longer carry as much weight in consumers’ credit scores. Currently, FICO 8 makes no distinction between unpaid medical and non-medical bills.

2.) It will disregard accounts in collections that consumers have already paid. Currently, FICO 8 makes no distinction between paid and unpaid accounts in collections.

Treating medical debt differently comes as a welcome change to consumers. In a May 2014 report, the Consumer Financial Protection Bureau (CFPB) said millions of Americans’ credit scores are being “overly penalized” by medical debts in collections.

So how do you know if your credit score will improve because of the new model? Basically, if your credit score is low as a result of unpaid medical bills or bills that went into collections that you later paid, you are likely to get a significant boost from FICO 9 when it takes effect.

Remember, you have the power to boost your credit score by following these “money smart” moves:
• Pay your bills on time.
• Keep your balance on credit cards below 30% of your total credit limit at ALL times.
• Using credit as early in your adult life as possible.
• Keeping a good mix of credit accounts on your credit report.
• Applying only for credit that you actually need.

If you are in a financial crisis and considering filing for 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.

Related Resources:
http://www.nerdwallet.com/blog/health/2014/08/08/new-fico-score-boost-credit-medical-bills-focus/

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Foreclosures hit Pre-Crisis Low

The number of home loans that entered foreclosure in the second quarter this year hit its lowest level since early 2006, just before the housing crisis, according to data released by the Mortgage Bankers Association. Housing experts attribute the low rate to an improving job market and higher home prices, another sign that the mortgage crisis is behind us- for now. At the mortgage crisis’ worst point, in the third quarter of 2009, servicers started foreclosures on 1.42% of home loans. Last quarter, they began foreclosures on only 0.4% of loans, the lowest rate since the second quarter of 2006.

Delinquency rates- those that have at least one late payment but are not yet in the process of foreclosure- decreased to 6.04% after adjusting for seasonality, reaching its lowest level since the end of 2007. However, banks still have a number of already foreclosed-upon homes to work through particularly those in “judicial states,” where foreclosures must be processed through the court and tend to take longer.

Florida, New York and New Jersey accounted for more than 40% of all loans in foreclosure in the second quarter. These three states will have a significant impact on national figures moving forward.

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.

Related Resources: http://blogs.wsj.com/economics/2014/08/07/foreclosure-starts-hit-pre-crisis-low/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Grieving parents hit with $200,000 in student loans

Losing their 27-year old daughter, Lisa, to liver failure was devastating enough, but then the student loan bills started coming. Steve Mason and his wife Darnell immediately took in their daughter’s three children- ages 4, 7 and 9 following her death.  The family had co-signed on $100,000 in private student loans that his daughter took out for nursing school. Unable to keep up with the payments and mounting expenses, the $100,000 debt ballooned to $200,000 as a result of late fees and interest rates as high as 12%.

Steve called the lenders to explain he could not afford the $2,000 a month payments, but unfortunately private lenders are not bound by any federal requirements to help borrowers or co-signers. Loan forgiveness is up to the discretion of the individual lender. Navient Corp., which manages several of the loans said they reduced the balance owed to $27,000 from nearly $35,000 and lowered the interest rate to 0% on three of four loans. The family was less fortunate with American Education Services, which handled the bulk of Lisa’s student loans. The lender refused to provide the family with any relief.

Dreams for retirement have been shattered for the Masons. The family has considered filing bankruptcy, but student loans are the only type of debt that generally cannot be discharged through bankruptcy. Legislation aiming to help families in similar situations, including recent bills that would allow student loan debt to be discharged in bankruptcy, have been introduced over the years but have yet to pass in Congress.

“People with other debt from splurging — they can discharge that,” Mason said. “Student loans should really be the one type of debt they do discharge because it’s done to further an education and career. But somehow getting [my daughter] an education has encumbered me for the rest of my life.”

The Masons are not alone.  Similar financial nightmares are facing families throughout the country. For now, the only option parents have is to negotiate a payment plan with the lender or try to prove undue financial hardship to the courts in order to get the debts discharged in bankruptcy.

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 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.

Related Resources:
http://money.cnn.com/2014/07/28/pf/parents-student-loans/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Five Store Credit Cards to Avoid

According to a survey of 61 major retail credit cards by CreditCards.com, retail credit cards are becoming debt traps for consumers. Many of these cards have an average APR of 23.23%, compared with 15.03% for other credit cards. This means a consumer who spends $1,000 on a retail card, and made only the minimum payments, would spend more than six years repaying that balance and end up paying a total of $1,840 for the $1,000 item. That is equivalent to an 84% markup!

Retail credit cards sometimes have benefits that may be worth it to consumers who frequently shop at the store and pay the balance off in full every month. Many of these cards come with perks like store discounts, special sales and rewards for cardholders. But miss one payment one month and you run into trouble on most of these credit cards.

Below are the retail credit cards to steer clear of, according to the CreditCards.com survey:

1. Zales has up to a 28.99% APR.
2. Office Depot Personal Credit Card has a 27.99% APR.
3. Staples Personal Account has a 27.99% APR.
4. My Best Buy has up to 25.24% and 27.99% APR, depending on your credit score.
5. My Best Buy Preferred has a 25.24% and 27.99% APR, depending on your credit score.

Bottom line: Retail credit cards are a bad idea for anyone who does not pay their balance off in full every month, because the interest rates are so exorbitant.

If you are in a financial crisis and considering filing for 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.

Related Resources:
http://finance.yahoo.com/news/don-t-credit-cards-5-134815527.html

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Once Popular TV Star Facing Foreclosure

“The O.C.” star Mischa Barton is facing foreclosure on her Beverly Hills mansion. According to TMZ, Barton has been handed a default notice informing her that she has missed more than $100,000 in payments. She purchased the eight-bedroom, 11-bathroom mansion for $6.4 million in 2005, when “The O.C.” was at its height of popularity and took out a loan for $4.2 million. The show went off the air in 2007 and Barton has been trying to sell the property since 2010 for a reported $8.9 million. Her prior attempts to rent the home at a price of $35,000 a month were unsuccessful.

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.

Related Resources:
http://www.tmz.com/2014/08/03/mischa-barton-home-foreclosure-mortgage-payments-photos/
http://www.torontosun.com/2014/08/03/mischa-barton-facing-foreclosure-on-beverly-hills-home
http://pagesix.com/2014/08/03/mischa-barton-could-lose-6-4m-mansion-to-foreclosure/