October 2013 - Page 2 of 3 - FREE CONSULTATION

117,088 Foreclosures Prevented in Second Quarter by Fannie Mae, Freddie Mac

Posted on October 16, 2013by Admin

According to the Federal Housing Finance Agency’s quarterly report, Fannie Mae and Freddie Mac completed approximately 117,000 foreclosure-prevention actions in the second quarter of 2013. The modifications, repayment and forbearance plans helped 75 percent of struggling homeowners manage their mortgage payments and keep their homes. The short sales and deeds-in-lieu allowed 25 percent of the borrowers to avoid foreclosure.

Additional findings from the second-quarter report included:

• One-third of the permanent loan modifications in the quarter included principal forbearance.
• More than half of the homeowners who received a permanent loan modification in the quarter had their monthly payment reduced by more than 30 percent.
• The number of Fannie Mae and Freddie Mac delinquent loans dropped nationally during the quarter. This was attributed to a drop in seriously delinquent loans.
• Borrowers who were more than 60 days delinquent on a Fannie Mae or Freddie Mac loan dropped 7 percent during the quarter.
• As of June 30, about 11 percent of the borrowers whose loan was modified in the third quarter of 2012 had missed two or more payments.

Click here to read more on the Federal Housing Finance Agency’s quarterly report.

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.

Federal Courts Continue Facing Delays during Government Shutdown

Posted on October 15, 2013by Admin

The government shutdown has delayed civil cases and continues to raise uncertainty about the federal courts immediate future. If the shutdown continues past Thursday, reserve funds that the federal courts have been using since the October 1st start of the shutdown will run out. Criminal cases, bankruptcy cases and most appeals continue to move forward in the system. However, civil cases and those in immigration court are feeling the greatest impact from the shutdown.

Immigration court proceedings are largely shutdown. Rafael Sanchez has been waiting two years to make his case for a green card after he and his family from Bogota, Colombia, overstayed their U.S. tourist visa in 1997. Their New Hampshire court hearing scheduled for October 9th was canceled because of the shutdown. Sanchez’s daughter, a high school senior, is not sure if she will be able to attend college now, as she will not qualify for financial aid without her green card. If the shutdown continues into the second half of October, juror reimbursement funds could run out as well – which would force courts to issue IOUs to jurors for their service.

Click here to read more about the Federal courts’ continued delays during the government shutdown.

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

Trend Alert in Foreclosures: Courts Becoming More Homeowner Friendly

Posted on October 14, 2013by Admin

According to a panel of circuit judges, tougher standards for getting evidence into record is having an effect on the number of new residential foreclosures being filed in the State of Florida. The new law that took effect July 1 requires plaintiffs to acknowledge in foreclosure complaints that all documentation needed to prove a case is in their possession. The August 28th decision from the Fourth District Court of Appeal requires that banks’ expert witnesses have direct knowledge of the authenticity of records being submitted for evidence.

The silver lining for homeowners is the new Florida law and recent appellate decisions have made lenders hesitant about filing new cases. Homeowners are getting dismissals based on the lenders’ inability to show they have standing and the statute of limitations expiring five years after the notice of default. This has been particularly evident in Palm Beach County where new filings dropped 61 percent in July from the previous year.

Click here to read more on courts becoming more homeowner friendly in foreclosures.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

U.S. Federal Courts Remain Open Amid Government Shut Down

Posted on October 11, 2013by Admin

Federal courts will continue to hear and decide cases amid the U.S. government shutdown. Federal courthouses will remain open under the terms of the Anti-Deficiency Act, the federal law that calls for “essential” work to continue in the event that federal funding is frozen. Most judicial services are considered essential- so judges will keep working, legal filings will continue to be processed and federal defenders will continue to be assigned indigent defendants.

However, courts have been encouraged to conserve as much as possible by deferring non-crucial expenses. The first two weeks following the shutdown, the courts will use revenue from filing fees and long-term appropriations that are not part of the annual budget to pay its staffers as normal.

Once those funds are exhausted, employees deemed non-essential would be furloughed without pay. Those considered essential would continue to work without pay, though they would be entitled to retroactive money after the government resumes business. Jurors will also be forced to wait until after the shutdown ends to receive payment for their service.

A memo from the courts’ central administrative office said judges should not prioritize between criminal and civil cases. During a shutdown, courts will eschew non-essential expenses, such as training, purchasing equipment and supplies and paying for travel.

While judges will continue to hear cases, the Justice Department said it will ask to postpone appearances in civil and bankruptcy cases as long as it did not compromise the safety of human life or the protection of property under the terms of the Anti-Deficiency Act. The Justice Department has said that criminal cases would continue to be heard without delay or interruption.

Click here to read more on the effects the government shutdown has on U.S. Federal Courts.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Credit Mistakes that Can Wreck your Retirement

Posted on October 10, 2013by Admin

A recent University study found that elderly people are more likely than any other age group to file for bankruptcy. The “boomer generation,” now thinking about retirement can learn from the seven credit mistakes below:

1.) Assuming that you are nearing the end of the road. According to the Social Security Administration, the average life expectancy is 84 for men and 86 for women. Keeping that in mind, treat credit as a long-term asset accompanied with risks, responsibilities and important benefits.

2.) Avoiding Credit. Many seniors are proud of their financial accomplishments. Whether they have finally paid off their mortgage, payed off their credit cards or car. But if you ever need a loan and you have little credit in your name, your credit score could have dropped. This means you will likely have to pay higher interest rates if you ever need credit for a life emergency. Instead, get a credit card. But use it only as you would a debit card, charging only what you can afford to pay at the end of each month. This will help rebuild your score.

3.) Taking on too much debt. A recent study by Demos found that Americans aged 50 and over have an average credit card balance of $8,278, compared to $6,258 for people under 50. Senior debt has many causes. More than a third of people over the age of 50 with credit card debt use their credit cards to cover basic living expenses, which is a big mistake. This makes them vulnerable to debt collection scams and withdrawing money from retirement accounts to pay off credit card debt.

4.) Student Loans. Think twice before signing for any student loans. The average borrower over age 60 owes $19,521 in student loan debt, and 12.5 percent of them are delinquent on their payments. Some took college classes later in life. Others have debt leftover from school days long past or cosigned on student loans for their children and grandchildren.

5.) Co-Signing. To help their children or grandchildren purchase a car, new home or pay for college, many seniors have co-signed loans. Oftentimes, not realizing that lenders and credit reporting agencies do not distinguish between borrowers and co-signers. Instead, lend money directly. This will help your loved one establish credit of their own without endangering your financial future.

6.) Failing to check your credit score. Check your credit score for free once a year with each of the three major credit bureaus and sign up for tools such as Credit.com’s free Credit Report Card, which allows you to see your credit profile and provides free scores that update monthly. 36 percent of seniors who did this found errors which severely damaged their credit scores.

7.) Failing to understand reverse mortgage risks. A reverse mortgage can provide seniors extra money during retirement by tapping all the equity they have built up in their home. The loan is repaid only when they die, sell or move out of the home. It is important that you do your homework. Meet with a certified financial advisor to see whether a short- or mid-term reverse mortgage is right for you.

Click here to read more on credit mistakes that can wreck your retirement.

Foreclosures, Timothy Kingcade Posts

U.S. Foreclosure Inventory Down 33 Percent from a Year Ago

Posted on October 9, 2013by Admin

According to a report released this week from CoreLogic, there were 48,000 completed foreclosures in the U.S. in August of 2013, down from 72,000 in August 2012, a year-over-year decrease of 33 percent. As exhibited by the numbers, foreclosure inventory continues to improve. Completed foreclosures are an indication of the total number of homes actually lost to foreclosure.

Overall residential shadow inventory, as of July 2013, was 1.9 million homes, accounting for a value of $293 billion and representing a supply of 3.7 months. This was down 22 percent from a year ago, when it was at 2.4 million and down 38 percent from its peak in 2010, when it reached 3 million homes, according to CoreLogic.

This past year, the value of the U.S. shadow inventory dropped by $87 billion- a sign of increased normalcy in the housing market. Highlights from the report include:

• The five states with the highest number of completed foreclosures for the 12 months ending in August 2013 were: Florida (111,000), Michigan (60,000), California (58,000), Texas (43,000) and Georgia (40,000).

• The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: Florida (7.9 percent), New Jersey (6.2 percent), New York (4.9 percent), Maine (4.0 percent) and Connecticut (3.9 percent).

Shadow inventory highlights include:

• As of July, shadow inventory was under 2 million properties, representing 3.7 months’ supply or 85 percent of the 2.2 million properties that were seriously delinquent, in foreclosure or REO.

• Of the fewer than 2 million properties in the shadow inventory, 874,000 properties were seriously delinquent (1.8 months’ supply), 661,000 were in some stage of foreclosure (1.3 months’ supply) and 318,000 were already in REO (0.6 months’ supply).

• The value of shadow inventory was $293 billion as of July 2013, down from $380 billion in July 2012.

Click here to read more on U.S. foreclosure inventory being down 33 percent from a year ago.

Foreclosures, Timothy Kingcade Posts

“Vampire” Foreclosures Damaging the Housing Market

Posted on October 8, 2013by Admin

With Halloween upon us, a blog posting on “vampire” foreclosures seemed appropriate. RealtyTrac has coined the term phrase in a new report to describe a growing number of homes across the U.S. that have been seized by a bank, but are still lived in by the original owners. An estimated 47 percent of bank-owned homes across the nation are still occupied by the previous owner. In some cities such as Miami, Los Angeles, Houston and Chicago, up to 65 percent of bank-owned homes are considered vampire foreclosures.

These vampire foreclosures along with the 20 percent of foreclosures known as “zombies,” where a homeowner has abandoned the property during the foreclosure process will eventually be put on the market. According to Vice President of RealtyTrac, Daren Blomquist, “this distressed inventory is artificially being held back so that in the short-term, it is helping boost the home prices and the housing market recovery in general. But the red flag is that eventually these homes are going to have to hit the market.”

At some point, banks will want to sell these properties, particularly as home prices increase. Combining the vampires, which number 250,000 nationwide, with the zombies, which number about 150,000, you have about 400,000 homes hitting the market. That’s about 10 percent of the current volume of home sales.

This will not only cause problems for the housing sector, but also the families living in them. Oftentimes, the former homeowners are still in the homes because the bank has given them 90 days to leave. They may also be in the home as they fight the foreclosure, because they believe they were improperly foreclosed upon.

The banks may also simply be allowing the homeowner to stay in an attempt to avoid the cost of maintaining the property. Blomquist predicts that as home prices rise and banks become more stable, banks will be more motivated to deal with these homes and proceed with evictions.

Click here to read more on “vampire” foreclosures damaging the housing market.

Foreclosures, Timothy Kingcade Posts

How the Government Shutdown Could Hurt Housing Market Recovery

Posted on October 7, 2013by Admin

The improvement in the housing market has been a driving factor for economic recovery. However, the recent government shutdown could impact this. Existing home sales increased 1.7% to an annual rate of 5.48 million units in August, the highest level since February 2007, according to the National Association of Realtors.

The housing market’s path to recovery has not been an easy one. It seems before the housing bubble burst, anyone with a pulse could qualify for a mortgage loan. One of the biggest problems the housing market has faced is extremely stringent lending requirements, which are expected to be compounded by the current government shutdown.
Banks remain risk adverse to issuing new loans in the wake of a financial crisis. In a tight credit market, potential buyers are expected to have a high credit score and put down at least 20% down payment.

To show proof of income, sellers are often asked to provide IRS Form 4506, but the majority of the Internal Revenue Service has been dark since Tuesday after lawmakers failed to reach an agreement on funding the government. There is also a strict IRS loan verification process. If buyers do not meet specific requirements, most mortgage loans cannot be authorized. David Stevens, president and CEO of the Mortgage Bankers Association and a former FHA commissioner, said if the shutdown extends beyond Monday that is when the delays in the mortgage process will really begin. Another hurdle, Stevens points out is that many lenders have to go through the FHA to get a mortgage approved and are unable to verify Social Security numbers because that system is also down- another obstacle for buyers trying to secure a loan.

Click here to read more on the recent government shutdown’s effect on the housing market.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Protecting your Credit Score when Canceling a Credit Card

Posted on October 4, 2013by Admin

Your credit score can vary from day to day and it is not an exact science. There are dozens of different models out there, the most popular being the FICO score- ranging from 300 to 850. When you need a good credit score, for example, when purchasing your dream home, your credit score becomes very important. If you have a credit score of 730, many mortgage brokers will give you their best rates. If you have a credit score over 740, it’s not going to make much difference- you are already getting the best rates available.

If you are applying for a mortgage, hold off on closing the credit card, until after your loan closes. Closing an account does not only affects your debt-to-credit-limit ratio; it can also adversely affect your credit score if the card you close is your oldest card, because length of credit history is seen as a good thing. The best way to permanently improve both your finances and your credit score is to get the debt-to-credit ratio to zero.

Click here to read more on protecting your credit score when canceling a credit card.

Foreclosures, Timothy Kingcade Posts

Westin Fort Lauderdale Hotel in Foreclosure

Posted on October 3, 2013by Admin

The Westin Hotel in Fort Lauderdale has been hit with a foreclosure lawsuit, as it struggles to keep up with new hotels closer to the beach. U.S. Bank filed a foreclosure lawsuit on September 23 against PFL VII LLC, the owner of the 293-room hotel at 400 Corporate Drive. The hotel was built in 1986 with 141,391 square feet, including 22,000 square feet of event space. PFL bought it for $40.5 million in 2007 with a $42 million mortgage.

According to Trepp LLC, the mortgage has $41.3 million outstanding. The payments were current as of early September, but the loan was placed into special servicing for imminent default several months ago. The borrower requested payment relief because of negative cash flows. For the 12 months ended March 31, the Weston Fort Lauderdale generated net operating income of $2.8 million on revenue of $13.4 million, but that was not enough to meet its loan payments without extra capital from the owner, according to Trepp. The hotel had an occupancy rate of 74 percent. Increased online competition has hurt the hotel, which has been unable to raise room rates. The situation is expected to worsen as it enters its slower season starting in August.

Click here to read more on the Westin Fort Lauderdale Hotel in foreclosure.