February 2015 - Page 2 of 2 - FREE CONSULTATION

Number of reverse mortgage complaints show consumers confused by loan terms

Posted on February 13, 2015by Admin

The Consumer Financial Bureau released a report highlighting the most common consumer complaints about reverse mortgages. A reverse mortgage allows a borrower, 62 years or older, to access the equity they have built up in their homes and defer payment of the loan until they pass away, sell or move out. The report details the approximately 1,200 reverse mortgage complaints the CFPB received between December 2011 and December 2014.

The most frequent complaint involved older consumers and their families demonstrating confusion about the terms and requirements of reverse mortgage loans. Many complaints showed a disconnect between consumer expectations and the way a reverse mortgage actually works.

For example, many consumers are frustrated when they are unable to refinance their loans because there is insufficient remaining equity in their homes. The CFPB reports these complaints suggest that some homeowners may not understand that the loan proceeds as well as the accrued interest on the loan overtime will substantially decrease the amount of available equity. Another complaint was over struggles with foreclosure due to issues with property taxes and homeowners’ insurance. Even though reverse mortgages require no monthly payments, borrowers are still responsible for property taxes and homeowners’ insurance. The CFPB reports the most frequent complaint involved consumers trying to add additional borrowers to the loan in order to extend the term of the loan.

To ensure that potential reverse mortgage borrowers and their families are prepared for the unexpected, the CFPB has the following advice for borrowers:

Verify who is on the loan: If two borrowers took out a reverse mortgage, they should verify with the reverse mortgage company’s loan records to ensure accuracy.
Plan ahead for the non-borrowing spouse: For those who took out a HECM reverse mortgage in the name of only one spouse before Aug. 4, 2014, they should contact their loan servicer to find out if the non-borrowing spouse can qualify for a payment deferral. If the answer is no, they should make an immediate plan in the event the borrowing spouse passes away first. If the reverse mortgage was taken out after Aug. 4, 2014, new changes to the HECM program allow the non-borrowing spouse to remain in the home, if certain conditions are met.
Plan ahead for other family members. Consumers should make sure that any children or family members living in the home know what to expect when the reverse mortgage comes due. When a borrower dies, heirs can sell the home, repay the loan balance or pay 95 percent of the property’s assessed value. If those members want to keep the home, the borrower should contact their reverse mortgage company to have them explain all of their options in greater detail.

Click here to read more on this story.

http://consumerist.com/2015/02/09/reverse-mortgage-complaints-show-consumers-confused-by-loan-terms/

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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The Dirty Dozen Tax Scams for 2015

Posted on February 12, 2015by Admin

Aggressive phone calls top the IRS’s list of “Dirty Dozen Tax Scams of 2015.” The government has issued a warning to taxpayers- the early weeks of the filing season are when these phone scams are rampant.

Below is the complete “Dirty Dozen” list of tax scams to watch out for this year:

1.) Phone scams. Aggressive and threatening phone calls by criminals posing as IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent months as these scam artists threaten arrest, deportation and license revocation.

2.) Phishing. Beware of fake emails or websites looking to steal your personal information. The IRS will never send you an email about a bill or refund. Even clicking on certain strange links and websites can allow scammers access to your personal information and passwords.

3.) Identity theft. Taxpayers need to be aware of the potential for identity theft, particularly around tax time and take every precaution to avoid becoming a victim.

4.) Return preparer fraud. Taxpayers need to be aware of criminals posing as tax professionals. These individuals set up shop each filing season to perpetrate refund fraud, identity theft and other scams.

5.) Offshore tax avoidance. It is a bad bet to hide money and income offshore. Taxpayers need to come forward voluntarily to get their taxes and filing requirements in order with the IRS’s Offshore Voluntary Disclosure Program.

6.) Inflated refund claims. Taxpayers need to be on the lookout for anyone who promises inflated refunds. Taxpayers should avoid anyone who asks them to sign a blank return, promises a large refund before looking at their records, or charges fees based on a percentage of the refund. These scams usually target their victims through flyers, word of mouth, advertisements, community groups and even churches.

7.) Fake charities. Taxpayers should be aware of fake charitable organizations anxious for donations. Oftentimes these charities have a similar or familiar sounding name to nationally recognized organizations.

8.) Hiding income with fake documents. Hiding taxable income by filing false Form 1099s or other fake documents is a scam that taxpayers should always avoid and guard against. In the end, the taxpayer is legally responsible for what is on his or her return, regardless of who prepares the paperwork and does the filing.

9.) Abusive tax shelters. Taxpayers should steer clear of using abusive tax structures to avoid paying taxes. The IRS is committed to putting a stop to these complex tax avoidance schemes and the people behind them. When in doubt, seek a professional’s opinion.

10.) Falsifying income to claim credits. Taxpayers should avoid inventing income to fraudulently claim tax credits. Taxpayers are sometimes talked into this by scam artists. A taxpayer’s best bet is to file the most accurate return possible.

11.) Excessive claims for fuel tax credits. The fuel tax credit is not available to most taxpayers and is generally limited to “off-highway” businessuse, including use in farming. However, the IRS routinely finds taxpayers who erroneously claimed the credit to inflate their refunds.

12.) Frivolous Tax Arguments. The penalty for filing a frivolous tax return is $5,000. Promoters of these schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe.

Click here to read more on this story.
http://www.nbcphiladelphia.com/news/local/The-Internal-Revenue-Service-List-of-Dirty-Dozen-Tax-Scams-291445471.html

If you are in 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.

Foreclosures, Timothy Kingcade Posts

U.S. Service Members Receive $123 Million in Foreclosure Relief

Posted on February 11, 2015by Admin

U.S. armed service members will receive $123.4 million as a first round of payments, in conjunction with the $25 billion nationwide mortgage settlement reached in February 2012. The U.S. Justice Department announced that 666 service members and their co-borrowers will receive $88 million from JPMorgan Chase & Co, Wells Fargo & Co, Citigroup Inc and Ally Financial Inc, under a federal law that protects service members from foreclosures.

Lenders have been accused of violating the Servicemembers Civil Relief Act that prohibits non-judicial foreclosures against service members who are on or have recently left active duty, and took out their mortgages before their service started. The foreclosures at issue took place between January 1, 2006 and April 4, 2012.

Acting Associate Attorney General Stuart Delery had this to say, “Service members should never have to worry about losing their home to an illegal foreclosure while they are serving our country.”

Click here to read more on this story.
http://www.reuters.com/article/2015/02/09/us-foreclosures-military-idUSKBN0LD2KQ20150209

Foreclosures, Timothy Kingcade Posts

HARP: The Government Refinance Program the Banks Don’t want you to know about

Posted on February 10, 2015by Admin

Despite being launched in 2009, less than 0.5% of people have taken advantage of the Home Affordable Refinance Program (HARP). Few people know about it and even less know how to use it. HARP is designed to help homeowners obtain a more affordable, stable mortgage. It provides a bailout to help millions of homeowners save a significant amount of money by lowering their mortgage payments. Those who have taken advantage of the program have reduced their mortgage payments by as much as $3,000 a year.

The program expires in 2015, but there’s still time to get signed up. If you qualify and refinance through HARP, you may be able to take advantage of a number of significant benefits, including:

• Eliminating up to 15 years of mortgage payments and interest;

• Changing to a lower monthly payment;

• Refinancing at historically low rates.

Banks do not want you to benefit from the program, because it allows homeowners to switch lenders, taking millions out of their pockets and putting it back into the pockets of everyday people. If you feel like your mortgage interest rate is too high with your current lender, it probably is. HARP can help you switch to a new lender, one prepared to offer you today’s low rates, and you could save big. HARP is a government program and is totally free, so you have nothing to lose.

Click here to see if you qualify.

Credit, Foreclosures, Timothy Kingcade Posts

Mortgage Advice from Dave Ramsey: Is a 30-year mortgage a bad option?

Posted on February 9, 2015by Admin

According to financial guru, Dave Ramsey, you are better off with a 15-year mortgage. His reasoning… “The 30-year mortgage robs your future. It enables borrowers to buy more house than they can afford by spreading the payments out over a longer term. In addition, those homeowners paid tens- even hundreds of thousands of dollars more in interest.”

Dave recommends getting a 15-year mortgage with “at least a 10% down payment and monthly payments that are no more than 25% of your take-home pay. This is a great way to ensure you build wealth quickly and avoid paying a mortgage into your retirement. Paying off your mortgage completely will free up income later for other investments and allow you to live more comfortably as you age.

If you have already committed to a 30-year mortgage loan, there’s still time for you to save and be mortgage free by retirement. Some homeowners have been able to switch to a 15-year mortgage with extremely low interest rates. However, if you cannot afford the 15-year repayment plan comfortably, do not risk it.

Instead, look into the Home Affordable Refinance Plan (HARP), a government-backed program that offers low mortgage rates and was designed to reduce mortgage payments and put money back in your pocket. If you owe less than $650,000 on your mortgage, the chances of qualifying for this program can be high. Homeowners who have refinanced have saved an average of $250 per month.

Click here to read more on this story.

http://www.bills.com/dave-ramseys-advice-on-mortgage/?utm_source=taboola&utm_adgroup=agg_desktoptablet&utm_term=coinhead_30flatout_agg&utm_medium=businessweek

Related Resources:

http://www.bills.com/dave-ramseys-advice-on-mortgage/?utm_source=taboola&utm_adgroup=agg_desktoptablet&utm_term=coinhead_30flatout_agg&utm_medium=businessweek

Bankruptcy Law, Credit, Timothy Kingcade Posts

Consumers Beware: No one can Erase Bad Credit

Posted on February 6, 2015by Admin

The Better Business Bureau is warning consumers to beware of companies making false promises of quick credit repairs. They have seen an increased number of complaints against local and national credit repair companies that are claiming to be able to erase bad credit for upfront fees of $250 or more. So can you actually erase bad credit? Consumers can have credit reporting errors corrected, but unfortunately, if the debt is valid no company can make it disappear.

For a fee, credit repair companies promise to clean up your credit report so you can obtain a car loan, mortgage or even a job. Based on the BBB experience, many of these companies fall short on their promises. After consumers pay these companies, sometimes thousands of dollars in fees, they do nothing to improve the consumer’s credit and simply disappear with the money.

The Federal Trade Commission has the following tips to help consumers avoid the pitfalls associated with these credit repair companies:

•Avoid any company that tells you it can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

•Avoid any company that charges an upfront fee for credit repair services. This is against the law.

•Beware of any credit repair company that does not tell you your legal rights and steps you can take to repair your credit score free of charge.

•Avoid any credit repair company that tells you not to contact a credit reporting company directly.

•Avoid any credit repair company that advises you to dispute ALL of the information in your credit report.

•Avoid any company that suggests creating a new credit identity or applying for an Employer Identification Number to use instead of your Social Security number. Not only is this illegal, it leaves consumers open to prosecution for fraud.

Click here to read more on this story.
http://www.theadvertiser.com/story/money/business/2015/01/03/beware-claims-one-can-erase-bad-credit/21251883/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Parents with poor credit: Beware of this Student Loan Rule Change

Posted on February 5, 2015by Admin

There has been much criticism that federal student loans are too easy to get and that borrowers can take on large amounts of debt with little verification that they can ever pay it back. The Department of Education has announced new regulations that are aimed at one type of federal loan that currently does not require a credit check- Parent PLUS Loans.

PLUS loans are available to parents to help provide financing for children who do not qualify for enough financial aid on their own. But there are no specific limits on the amount that can be borrowed under this program- other than that parents cannot borrow more than the total cost of their child’s education after other financial aid has been deducted.

In the final regulations issued by the Department of Education, which go into effect March 29, 2015 borrowers who have an “adverse credit history,” may find it harder to qualify for these type loans. The evaluation will take into account whether the borrower has:

• One or more debts that are 90 days or more delinquent with a total outstanding balance larger than $2,085;

• Accounts placed for collection or charged off in the two years before the credit report is pulled;

• Bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a federal student loan debt in the past five years.

PLUS loans can be dangerous and are often accompanied by higher interest rates than other federal loans and fewer flexible re-payment options. For example, one parent shared on Credit.com’s blog that he has $45,000 in outstanding parent loans, but only makes $28,000. His children are unable to help him repay the loan at this time.

These changes are likely going to make parents look harder at the true burden of student loan debt and the potential return they are getting with taking out these loans. Parents thinking about borrowing money to help their children pay for college would be wise to review their annual credit reports to identify any discrepancies and think twice about whether PLUS loans are the best option.

Click here to read more on this story.
http://www.foxbusiness.com/personal-finance/2015/02/02/student-loan-rule-change-that-could-hurt-parents-with-bad-credit/

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 http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

T-Mobile will Ignore Bad Credit if Bills are paid on Time for One Year

Posted on February 4, 2015by Admin

Many Americans miss out on qualifying for the favorable rate plans mobile carriers offer due to having a less than perfect credit score. In fact, 63% of Americans have a less than desirable credit score, so they do not qualify for the deals many of the wireless companies spend billions of dollars promoting.

John Legere, T-Mobile’s CEO and President, wants to change all that by offering a new service called Smartphone Equality. This plan will offer the same financing options for all customers, including those with bad credit. This will be available to customers who have paid their T-Mobile bill on time for 12 months.

Smartphone Equality puts the relationships the cellular company has with loyal customers above their credit scores. Legere believes that T-Mobile’s relationship with those customers is a better predictor of future behavior than their credit history.

Click here to read more on this story.
http://www.forbes.com/sites/amitchowdhry/2015/01/26/t-mobile-smartphone-equality/

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Bill Introduced to Forgive Student Loan Debts during Bankruptcy

Posted on February 3, 2015by Admin

A lawmaker has filed legislation in Congress which will allow student loan debt to be treated just as other forms of debt that can be discharged in bankruptcy. As we all know, student loan debt is treated differently in bankruptcy court than credit card debt, auto loans or mortgage debt, and cannot be discharged. Representative John K. Delaney, D-Md., introduced the Discharge Student Loans in Bankruptcy Act (H.R. 449).

In a statement he said, “Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions.” Student loan debt continues to increase as the cost of college tuition continues to rise. According to a study by the Institute for College Access & Success, 69 percent of graduates from the class of 2013 left school with an average of $28,400 in student loan debt.

Delaney has backed several bills focused on student loans and financial aid. He is also a cosponsor of the Middle Class CHANCE Act, which increases support provided by Pell Grants. In his previous term, Delaney voted for legislation in the House to prevent student loan rates from rapidly increasing and cosponsored the Truth in Tuition Act, which requires institutions to provide multi-year tuition and fee schedules.

Click here to read more on this story.
http://www.accountingtoday.com/news/education-planning/congressman-introduces-bill-to-forgive-student-loan-debts-during-bankruptcy-73395-1.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Top 5 Predictions for Student Loans this Year

Posted on February 2, 2015by Admin

Last year, we saw small signs of change and new advocates gearing up to address the student loan crisis. You may be wondering what to expect this year. Here are five predictions for student loans in 2015.

1.) Policy changes. There will continue to be a lot of attention on student loans in Washington. There will likely be a bill passed by a Congressional Democrat, but it will be tough to pass with a Republican-run Congress.

2.) Rising rates. Interest rates will remain relatively stable, with the possibility of increasing towards the end of the year. It has been widely anticipated that interest rates will rise towards the end of this year.

3.) Better student loan options for more people. New companies have entered the market with the goal of “fixing the broken student loan market.” These online lenders focus on giving student loan borrowers a better rate and overall better experience. They focus mainly on refinancing student loan debt into lower interest rate loans. These companies will continue to expand this year, providing more positive options for those with student loan debt.

4.) More talk about the value of an education. Price-conscious consumers will rigorously evaluate the ROI of their education. People will become more educated on the university system today- and determine the high cost of education is economically “worth it” for some schools and degrees, but not as much for others.

5.) Broader attention from investors. Investor demand for student loan assets will increase. The last 1-2 years have seen increased student loan activity in the capital markets- securitizations, whole loan sales and equity investments. There is expected to be more of this in 2015 and an increased demand from investors.

Click here to read more on this story.