March 2013 - Page 2 of 3 - FREE CONSULTATION

Bankruptcy Law, Credit, Timothy Kingcade Posts

Best Credit Cards to use after Bankruptcy

Posted on March 15, 2013by Admin

Believe it or not, getting a new credit card after filing for bankruptcy is one of the best ways to begin rebuilding your credit score. But how do you know which one is right for you? A secured credit card is a great way to start over. These are one of the few types of credit cards that tend to be easy to get if you’ve been through bankruptcy or other credit problems. In most cases, they are available as soon as your bankruptcy is discharged. You’ll place a security deposit with the issuer and get a major credit card you will use just like any other credit card.

To ensure you get the maximum benefit from your secured card, it is important you do three important things:

1.) Choose a card that reports your payment history each month to all three credit-reporting agencies.

2.) Make your payments on time, all of the time, NO EXCEPTIONS. A single late payment can cause your credit score to drop significantly.

3.) Keep your balance low. Only use 10%-15% of your available credit line.

If you are trying to rebuild credit after bankruptcy, you need to review your credit reports and scores frequently. Get your credit reports from AnnualCreditReport.com about three months after your case is discharged. Dispute any mistakes you find. Then use Credit.com’s Free Credit Report Card to check your credit score each month. If you have positive credit references reporting to the credit bureaus, you should see steady progress over time. One more tip, do not apply for additional credit until your bankruptcy is discharged. Taking on additional credit while you are still completing a bankruptcy can jeopardize your case.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com.

Credit, Foreclosures, Timothy Kingcade Posts

Don’t be fooled by these 6 Mortgage Scams

Posted on March 14, 2013by Admin

Homeowners struggling to avoid foreclosure are often the prime targets of con artists selling mortgage-relief scams. Many mortgage scammers have been arrested, but plenty more are trying to take advantage of homeowners’ financial woes. Here are some examples of common mortgage-relief scams.

1.) Imposter counselors: Several Florida men were arrested in August 2011 and charged with defrauding homeowners as a company named Home Owners Protection Economics Inc., or H.O.P.E. — meant to mimic the name of Hope Now, a public-private alliance of lenders, nonprofit housing counselors and other mortgage-industry participants. The scammers claimed to be connected to the homeowners’ lenders or said the homeowners were approved for a loan modification under the Home Affordable Modification Program. They demanded an upfront fee for their services.

2.) Loan-Audit Offers: This scam works by a salesperson calling the homeowner and saying they are going to audit their mortgage documents and use the violations they could find to force their lender to approve a loan modification. The scammers would tell people that they found violations 90% of the time. These scammers typically ask homeowners for $1,000 to $5,000, with an average fee of $3,000.

3.) Money-back guarantee: Howard Shmuckler, owner of The Shmuckler Group in Vienna, Va., collected almost $2.8 million from struggling homeowners by promising them he could guarantee a loan modification under the Home Affordable Modification Program. He told these homeowners to stop making their mortgage payments and to avoid contact with their lenders. Homeowners should never pay a fee for loan-modification assistance. Government and nonprofit housing counselors provide this service for free. Some of Shmuckler’s victims might have been able to modify their mortgages under HAMP if they had not fallen so far behind on the mortgage after following Shmuckler’s advice.

4.) Calls to stop contacting your lender: Be wary of anyone who tells you to stop paying your lender or who tells you to stop trying to contact your lender. This past March, three people were arrested on charges of committing fraud against California homeowners. They were Gregory and Cynthia Flahive, ex-spouses and co-owners of Flahive Law Corp., and the firm’s managing attorney, Mike Johnson. In addition to requiring upfront fees in exchange for loan-modification assistance, the Flahives told one homeowner to reject his lender’s offer of a loan modification. They told that homeowner that they could get a better deal. Instead, the home was lost to foreclosure in four months.

5.) Misrepresentation of the attorneys general settlement: Another common scam is for homeowners to be told that a caller is from a government agency with information about the mortgage settlement. The caller requests a bank routing number or other personal information to “facilitate the refund,” but then the scammers drain the bank account. To avoid this scam, never give out personal financial information to anyone who calls.

6.) Mass-joinder scam: Fake and even legitimate law firms send notices to homeowners, including some who are not in financial distress, that claim the homeowners have been wronged by their lenders and may be eligible for restitution. The homeowners are told to pay $2,000 or more to become part of the lawsuit. Never pay a fee to become part of a class-action lawsuit. Anyone who guarantees a loan modification from your lender or guarantees that a foreclosure can be prevented cannot be telling the truth.

Click here to read more on Mortgage Scams.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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.

Credit, Foreclosures, Timothy Kingcade Posts

10 Items you ABSOLUTELY Need to get a Mortgage

Posted on March 13, 2013by Admin

Many people believe that owning a home is unattainable after filing for bankruptcy. But in fact, the average waiting period from mortgage lenders after filing for bankruptcy is just two years. As long as you stay on top of your payments and do not accrue more debt. Below is a laundry list of documents you will need to start a mortgage application.

1.) A valid driver’s license which verifies your identity, compliant with the Patriot Act.

2.) Secondary ID’s (a passport or social security card) as support for number one.

3.) Your most recent pay stubs for a period of one month.

4.) W-2 forms from employers for the past two years to prove employment and earnings history.

5.) Signed federal tax returns (with all pages and schedules) for the past two years.

6.) Most recent bank and asset statements (all pages) for a period of two months.

7.) Fully executed contract for the property you are buying.

8.) If refinancing, a copy of your deed.

9.) Name, address and phone number of your landlord

10.) Name, address, phone, fax numbers and email address for your attorney

Click here to find more tips to be approved for a mortgage.

Credit, Timothy Kingcade Posts

One in Ten People Denied Jobs Due to Employer Credit Checks

Posted on March 12, 2013by Admin

A recent survey from Demos found that one in four unemployed people were required to go through a credit check when applying for a job. The survey also found that one in ten people were denied employment due to information on their credit report. The survey was conducted on 1,000 low and middle-income households. Most people believe credit checks are only required when applying for senior level positions; however, the study found that credit checks are commonly used for entry-level or low-paying positions as well. It is likely that some workers denied a position due to their credit score have errors on their report. According to the Federal Trade Commission, one in five consumers has an error on their credit report.

Demos also surveyed the reason for bad credit and found that two common factors for bad credit scores are unemployment and the loss of health insurance. The report attributes many of those with bad credit to poor misfortune and a suffering economy and says little of how these people would perform at work. The survey also found that minorities are affected more by these credit checks than white households. African-American households had an average unemployment rate of 14% at the end of 2012 and Hispanic households had an average of 10%. These are much higher than white households, which were at 6% at the end of 2012, according to the Economic Policy Institute.

To read more on this story visit: http://money.cnn.com/2013/03/04/pf/employer-credit-checks/index.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

9 Ways to Teach Your Teenager About Money

Posted on March 11, 2013by Admin

One of the most valuable lessons you can teach your teenager is financial responsibility. Some schools across the country have installed financial literacy programs in their curricula, but many have not. Below are nine ways to teach your teenager about money management at home.

1. Start with a game. Websites such as PracticalMoneySkills.com and Learn4Good.com have games that can teach your teenager how to manage money. On Learn4Good.com, games such as “Record Shop Tycoon” or “Burger Restaurant” will teach your teen how to run a business. On PracticalMoneySkills.com, the “Financial Football” game consists of Q&A’s where a correct answer will allow the player to move on the football field.

2. Start a monthly budget. If you allow your teen a monthly allowance, it will teach them how to budget and save when they want something expensive. However, you should be prepared to say no if they spend all of their money in the first week.

3. Pay your teen to save. You should start a savings account for your teen and teach them to put 10 percent of their allowance, paycheck and gift money they receive in the account. You should offer to match their savings amount as an incentive for them to choose to save. It will be good practice if you have your teens do the research themselves to find an account with the lowest fees and highest interest rates.

4. Give them a clothing allowance. Each season or school term, provide your teen with a clothing allowance. Place the budgeted amount on a prepaid debit card to give your teen the power to figure out how to spend their clothing allowance effectively.

5. Take them to thrift shops. Teach your teens to appreciate vintage clothing for both style and savings. Thrift stores can also be great for gifts, books and DVDs.

6. Give them budgeting projects. If you are planning a vacation, ask your teen to research a hotel, travel expenses and activities to do while you are there. You can give them a budget and let them map out the vacation.

7. Encourage them to get a job. Once your teen turns 16 (or the legal working age in your state) encourage them to get a part-time job. Before their first paycheck arrives, help them plan to save a part of their paycheck. You should also help them determine where the rest of the check will go, such as towards car insurance or a cell phone bill.

8. Talk about college financing. As your teen nears high school graduation, talk to them about the average cost of college and your plans and expectations for financing their education.

9. Teach them about identity theft. Warn your teen about the dangers of identity theft when it comes to things such as online shopping. Teach them the importance of safeguarding their Social Security number, name and bank account information.

To read more on this story visit: http://www.dailyfinance.com/2013/03/05/financial-literacy-teen-money-education/

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Community College Grads Out-Earn Bachelor’s Degree Holders

Posted on March 8, 2013by Admin

A recent study conducted by Georgetown University’s Center on Education and the Workforce showed that nearly 30% of college grads with associate’s degrees make more money than those with bachelor’s degrees. In several states, community college graduates make more, right out of school, than graduates of four-year universities. For example, community college graduates in Tennessee make an average annual income of $38,948. This is approximately $1,300 more than the average salaries for graduates of four-year institutions. The Georgetown Center estimated that approximately 29 million current jobs paying middle class wages require only an associate’s degree.

Most college grads with bachelor’s degrees eventually catch up to community college grads in earnings by mid-career; however, another factor to consider is that four-year degrees are more expensive than two-year degrees. The increase in wages for community college grads is attributed to a recent high demand for people with “middle-skills,” such as: radiologists, lab technicians, paralegals and machinists. According to CareerBuilder.com, air traffic controllers can make $113,547, radiation therapists can make $76,627 and registered nurses can make $65,853, all of which are two-year community college degrees.

Credit, Foreclosures, Timothy Kingcade Posts

10 Reasons You Are Not Refinancing

Posted on March 7, 2013by Admin

Interest rates have lingered at 60-year record lows for some time now, allowing millions of homeowners to refinance their mortgage loans. Interest rates have declined with such consistency that thousands of homeowners have refinanced more than once. However, many homeowners are still hesitant to do so, below are ten possible reasons why:

1. Credit Score: Whether you are refinancing your home or buying a home, mortgage lenders focus on your credit score. You will need a score of at least 740 to get the best interest rate possible. If your current credit score is low, you can try to refinance with the Federal Housing Administration (FHA). The FHA has a minimum credit score requirement of 580.

2. Equity: Many homeowners have not recovered equity lost when home prices tanked six years ago during the housing market crash. In the past, homeowners with little equity did not possess much bargaining power; however, those with little or no equity may now have the advantage. The government’s Home Affordable Refinance Program (HARP) was designed to help underwater homeowners refinance their mortgages. The expansion of HARP 2.0 means that there are no underwater restrictions to qualify.

3. Mortgage Insurance: Homeowners who put less than 20% down when they bought their homes are required to pay lender’s mortgage insurance. If you have been told that you cannot refinance because of mortgage insurance, this is not true. It may be more difficult, but not impossible. You can qualify for HARP whether you pay mortgage insurance or not.

4. Debt-to-Income Ratio: Many homeowners have been forced to rely on credit cards over the past few years, as a result of the recession. Your debt may have piled up to the point that your debt-to-income ratio is too high to refinance. Your best bet is to focus on paying down your debt before trying to refinance.

5. A Low Appraisal: If your appraisal was lower than you anticipated, it is possible you will be rejected for a refinance. However, a low appraisal does not mean that your property is not valuable. You may need to challenge the low appraisal or renegotiate the deal with your lender.

6. You Think You Are Too Old: If you are retired or close to retirement, you may think refinancing is not worth the trouble. Before ruling out refinancing your mortgage, look into shorter-term loans that might be better for you.

7. Low Income: Even if you are making less money than you were at the time you bought your home; your lender will take into consideration that you have managed to keep current on your home loan. You may also want to look into HARP 2.0, which requires proof of employment and proof that you are making your mortgage payments.

8. Cannot Afford It: Refinancing fees cost approximately 2% of your loan amount. The closing costs, appraisal fees and credit checks will likely cost you a few thousand dollars. Also, beware of “no-cost” refinancing. Lenders that offer these deals will charge you a higher interest rate.

9. Unable to Document Income and Assets: You may think as long as both, your credit score and home value are in check, you can get approved for a refinance. However, you will need proper documentation of your income, assets, deposits and tax forms. If you cannot provide this paperwork, your refinance will likely be rejected.

10. Not Worth the Trouble: Refinancing your home is not a fun or easy experience. Many homeowners today avoid refinancing simply because it is not worth the trouble. Rather than ruling out refinancing altogether, look into streamlined programs that provide a simple and quick refinancing option.

To read more on this story visit: http://realestate.msn.com/10-reasons-youre-not-refinancing#1

Credit, Foreclosures, Timothy Kingcade Posts

Homeowners Turning Down Refinancing Options

Posted on March 6, 2013by Admin

Since the housing market crashed in 2008, millions of Americans were left underwater on their mortgages. Last year, the federal government began installing programs to help underwater homeowners. One of the programs that was set in place in 2010 but revised several times since, the Home Affordable Refinance Program (HARP) was specifically designed to help homeowners who were underwater on their mortgages but still current on their mortgage payments. The changes made to HARP last year made it much easier for homeowners to qualify. Since these changes were made, mortgage lenders have aggressively tried to let underwater borrowers know about this opportunity to save money by refinancing, however few homeowners are taking the bait.

Mortgage originator, Quicken Loans, says that only about 25% of their qualifying homeowners have actually refinanced. The federal government and mortgage originators believe that homeowners are not taking advantage of the program because they are wary of being “bitten” again. The wounds from all of those who fell victim to no-money-down loans and balloon payments have left many borrowers cautious of any offers made by lenders. Analysts say that it is a shame that so few borrowers are refinancing through HARP since it was specifically designed to reward good borrower behavior.

To read more on this story visit: http://finance.fortune.cnn.com/2013/02/15/mortgage-refi-borrowers/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Best Shopping Deals in March

Posted on March 5, 2013by Admin

March has always been a big shopping month, particularly for those looking for spring deals. Below is a list from Dealnews.com of the best products to buy this month.

PlayStation 3
Sony debuted the long-awaited PlayStation 4 in late February. In the past, prices on previous generation PlayStations have dropped between 60% and 64% just after the latest models were released. The prices of PlayStation 3 consoles are expected to do the same this month.

Chocolate
High-end chocolate shops, such as Godiva, are expected to have great deals on chocolates leftover from Valentine’s Day this month. Typically after a holiday, themed candy is discounted up to 50%.

Luggage
March is a great time of the year to buy travel gear. Last year, a number of stores had great luggage deals during March such as: Wal-Mart, eBags, Macy’s and Sears. These deals will likely last through spring.

Frozen Foods
March is National Frozen Foods Month. Although it was adopted as a marketing ploy, you will see special promotions from different food brands throughout the month on frozen foods.

Smartphones
In February, at Mobile World Congress, several phone manufacturers debuted new smartphones, turning 2012 models into previous-generation goods. This month will be a good time to buy last year’s smartphones at discounted prices.

Big-Screen TVs
TV deals were at all-time lows during February. These discounted prices are expected to continue into March.

Bankruptcy Law, Credit, Timothy Kingcade Posts

As Debt Grows, Students Delay Payment

Posted on March 4, 2013by Admin

Student loan debt surpassed both credit card debt and mortgage loan debt last year. While recent graduates are struggling with a weak job market and bad economy, many borrowers are delaying principal and interest payments, causing an even larger surge of student loan balances. The housing market showed signs of recovery during 2012, however unemployment rates remained high. According to Ezra Becker of one of the three major credit-reporting agencies, TransUnion, students can only defer repayment for a short period of time, after which, borrowers often find themselves in financial troubles.

TransUnion tracked active student loans in its credit database from March 2007 to March 2012 and determined that 65.5 million of the 128.8 million in outstanding student loans were in deferment. The report also showed that the balance of loans including all lenders that are in deferment represent $388 billion of the $893 billion in total outstanding loan debt. The average in student debt had also increased to $23,829 since 2007, approximately a 30 percent increase. The surge in student loan debt has had negative impacts on individuals, lenders and the economy as a whole. According to U.S. Senator Dick Durbin D-III., Americans are struggling with such significant student loan debt that many are forced to put off major life decisions such as buying a home or starting a family.

If you have any questions on this topic or are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com.