Posts Tagged: ‘housing bubble’

America’s Foreclosure Crisis Isn’t Over Yet

March 9, 2016 Posted by kingcade

Goldman Sachs is the latest big bank to settle claims related to its role in the 2008 housing crisis. The global investment bank reached a deal with the U.S. government, agreeing to pay $5.1 billion as part of the settlement. Nearly $2 billion of which will be set aside for programs to help struggling homeowners avoid foreclosure.

During the height of the financial crisis, the government’s top priority was backstopping the nation’s banking system. Congress authorized $475 billion for the Troubled Asset Relief Program (TARP). Approximately $46 billion of that was allocated to programs to help struggling homeowners avoid foreclosure.

Tens of billions of dollars were also set aside following a string of settlements between the government and a number of Wall Street banks, including Bank of America. These funds were put into programs such as the Home Affordable Modification Program (HAMP) to provide relief to homeowners.

Eight years after the housing bubble burst, foreclosures and underwater mortgages are down nationally. However, there are several areas and states that are still struggling. In 2013, Christy Goldsmith Romero, special inspector general for TARP, warned that homeowners were defaulting on their modified loans at an “alarming rate.” Data released in September of 2015 revealed the rate of defaults on the reset mortgages increased greatly over time. Romero’s office released a statement that said, “The longer a homeowner remains in HAMP, the more likely he or she is to re-default out of the program.”

Between 2009 and 2015 nearly 2.2 million homeowners applied for a trial modification but nearly 786,000 canceled. Out of the remaining 1.4 million granted HAMP modifications through the Treasury Department, approximately 467,000 re-defaulted.

According to thousands of calls and complaints received on the Special Inspector General TARP hotline (SIGTARP), banks and mortgage servicers are to blame for the high default rate. Homeowners claim that the banks lost paperwork and made clerical errors resulting in defaulted mortgages. According to SIGTARP, “dual-tracking” is also an issue. This is a practice where the servicer of the HAMP mortgage continues to pursue foreclosure while the homeowner is in the HAMP program.

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 website at www.miamibankruptcy.com.

Home Prices Increase, Outpacing Wages

April 6, 2015 Posted by kingcade

According to RealtyTrac, home prices are rising 13 times faster than wage growth nationwide. From 2012-2014, median wages rose only 1.3% and median home prices climbed 17%. Low interest rates have helped keep buying an option. However, with wages not keeping pace with home prices in many of the markets analyzed, real estate experts believe this will result in another housing bubble.

On the flip side, homeowners who lost equity in their homes during the crash are likely rejoicing over the rapid increase. At the height of the crash, 13 million homeowners were underwater. Now the number is down to seven million.

According to the report, the markets with the highest rate of price appreciation compared to wage growth were:

• Merced, CA
• Memphis, TN
• Santa Cruz, CA
• Augusta, GA
• Palm Bay-Melbourne- Titusville, FL

First-time buyers often purchase starter homes, which according to RealtyTrac, have faced the biggest deficit in inventory. Rising home prices could be an incentive for more people to list their homes and ease up the tight inventory levels.

Click here to read more about rising home prices outpacing wages.

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.

Homes in Foreclosure Hit 6-year Low

January 21, 2014 Posted by kingcade

Foreclosures are on the decline, according to the latest evidence from RealtyTrac. The U.S. housing market continues to emerge from a deep slump, aided by rising home prices, steady job growth and fewer bad loans. More homeowners are keeping up with their mortgage payments, leading fewer homes to enter the foreclosure pipeline.

Foreclosures totaled 747,728 last year, which is down 33 percent from a year earlier and is the lowest annual level since 2006. As of December, more than 1.2 million properties nationwide were in some stage of the foreclosure process or owned by banks, but not yet sold. That is a decline of 19 percent from a year earlier and 44 percent below their peak of more than 2.2 million homes in December 2010, Realty Trac said.

Florida continues to remain the nation’s foreclosure hotbed and had 306,018 homes in some stage of foreclosure or owned by banks in December. That amounts to a quarter of the national total.

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 website at www.miamibankruptcy.com.

U.S. is set to Sue Big Banks over Mortgages

September 10, 2011 Posted by kingcade

The Federal agency that oversees mortgage giants Fannie Mae and Freddie Mac is scheduled to file suit against more than a dozen big banks. The suit is accusing Bank of America, JPMorgan Chase, Goldman Sachs, Deutsche Bank and other banks of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and are seeking billions of dollars in compensation.

The Federal Housing Finance Agency suits are expected to be filed in the coming days and stem from subpoenas the finance agency issued to banks a year ago. The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value. Fannie Mae and Freddie Mac lost more than $30 billion, in part as a result of the deals. These losses were borne mostly to tax payers.
The suits are being filed now because regulators are concerned that it will be much harder to make claims after a three-year statute of limitations expires this Wednesday, the third anniversary of the federal takeover of Fannie Mae and Freddie Mac.

To read more on the story visit:
http://www.nytimes.com/2011/09/02/business/us-is-set-to-sue-dozen-big-banks-over-mortgages.html?_r=3&ref=nelsondschwartz

If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy and foreclosure defense attorneys at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.