April 2015 - Page 2 of 3 - FREE CONSULTATION

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

FTC Uncovers another Mortgage Relief Scam

Posted on April 16, 2015by Admin

According to the Federal Trade Commission, the company “Wealth Education” deceptively promised mortgage relief services to financially distressed homeowners. The company charged hefty upfront fees and advised homeowners to take steps that ultimately led them into foreclosure.

The Los Angeles-based company has been one of many scammers that used the housing market crash of 2008 to take advantage of struggling homeowners. The company allegedly used a variety of names and sold phony services that promised to lower homeowners’ mortgage payments or refund their money. According to the FTC, the company never made good on its promise. The company charged rates as high as $5,000 and never issued a refund when it failed to provide homeowners with lower mortgage payments.

It is illegal for companies to charge upfront fees for the promise of a mortgage modification. Companies can only charge fees if you have an acceptable written offer from the lender.

Wealth Education was also advising homeowners to stop communication with their lenders. This would delay victims from figuring out the scam and cause them to stop making payments, which in turn resulted in their homes going into foreclosure.

Click here to read more on this latest mortgage relief scam.

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, Foreclosures, Timothy Kingcade Posts

Stricter Requirements for Reverse Mortgages Coming Soon

Posted on April 15, 2015by Admin

Beginning April 27th, 2015, the government is imposing stricter requirements when it comes to reverse mortgages. Reverse mortgages are available to seniors 62 years of age and older whose homes have equity they want to convert into cash. There is no repayment required until the borrower sells the house, moves out or dies. Loan recipients are responsible for paying property taxes, hazard insurance premiums and keeping the home in reasonable condition.

For the past 30 years, The Federal Housing Administration has had lenient standards for reverse mortgages. If a homeowner qualified with their age and equity, they were pretty much guaranteed a loan. The revised application process will be similar to a new mortgage application.

During the recession, many reverse mortgage holders failed to pay the required property taxes and hazard insurance premiums. In addition, the real estate market tanked, creating huge losses on defaulted and foreclosed properties. The FHA’s losses were so significant that the Treasury Department had to provide the Administration with a $1.7 billion bailout in 2013.

As a result, after April 27th, 2015, applicants will be required to demonstrate both the “willingness” and “capacity” to meet their financial obligations before obtaining a reverse mortgage. Lenders will pull borrowers’ credit reports and credit scores, just as they do for home loan mortgages.

Homeowners will have to prove that they have paid their real estate taxes and homeowner association fees on time for the past 24 months. They will also have to show proof of employment, income and other financial assets.

Click here to read more on the upcoming changes to reverse mortgages.

Credit, Foreclosures, Timothy Kingcade Posts

Home Buyers Obtain Mortgages After Foreclosure

Posted on April 14, 2015by Admin

Nearly five million American families lost their homes to foreclosure between 2007 and 2014. Foreclosures can have a negative impact on your credit score, but that doesn’t disqualify you from purchasing a home, again. Events such as foreclosure can stay on your credit report for up to seven years, but if you stay financially responsible after foreclosure, you can obtain another mortgage in seven years or less.

Homeowners who lost their homes in the early years of the housing crisis are starting to see the black marks erased from their credit reports, improving their chances of owning a home. Fair Isaac Corp., the developer of FICO credit scores estimated there were 910,000 homeowners who had foreclosure proceedings filed against them, between October 2007 and October 2008. Of those consumers, approximately 264,400 had the foreclosure erased from their credit reports by October 2014.

Some of the larger mortgage lenders, such as Bank of America Corp. and J.P. Morgan Chase & Co., are still hesitant to lend to borrowers who have a foreclosure on their credit report. Many of the large lenders were hit hardest with mortgage-related penalties and have since implemented tougher credit requirements on borrowers.

Click here to read more on purchasing a home after foreclosure.

Bankruptcy Law, Credit, Timothy Kingcade Posts

6 Tips to Get a Car Loan After Bankruptcy

Posted on April 13, 2015by Admin

If you have filed for bankruptcy or are considering filing for bankruptcy, you may be under the impression that it’s impossible to ever get approved for a home or car loan, again. This is simply not true.

Below are six tips to help you buy a car after filing for Chapter 7 or Chapter 13 bankruptcy:

1. Get a copy of your credit report and credit score. Be prepared before you go to the dealership. Your credit report is available for free at AnnualCreditReport.com or Credit.com. The dealership will pay particular attention to your previous auto loans, so make sure you familiarize yourself with that information.
2. Start saving for a down payment. Most consumers’ cash flow improves after bankruptcy, so you can put some of that extra money towards your down payment. Remember that the larger the down payment, the less risky you look to the lender.
3. Shop around. Try to do your car shopping in one day to avoid having multiple pulls on your credit report. It is better to be preapproved before you visit the dealer, that way you have some leverage.
4. Avoid “buy here, pay here” dealers. Do not assume that dealers with the highest interest rates will be the only option for you. Some of these dealers do not have a great selection and you may end up with a car payment with a higher interest rate along with repair bills.
5. Pay on time. Chances are your credit score has taken a hit after filing for bankruptcy. Use your auto loan to help improve your scores by making your payments on time.
6. Refinance your car loan. If you have been making your car payments on time each month, you may be eligible to refinance your auto loan at a lower interest rate after six to 12 months.

Click here to read more on ways to purchase a car loan after filing for bankruptcy.

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

New Florida Rule to Expedite Foreclosure Cases

Posted on April 10, 2015by Admin

The court system’s backlog of foreclosure cases in Florida has inspired a proposed rule that would expedite foreclosure cases by considering them “abandoned” if not set for hearing (or heard) within 90 days. South Florida courts have been flooded with foreclosure cases since the 2008 housing bubble burst and has been one of the hardest hit regions for foreclosures. In 2009, there were more than 64,000 foreclosure suits filed in Miami-Dade County alone.

In an attempt to conserve judicial resources, the court has proposed a new rule that will push cases through much faster by using an administrative order to automatically dispense homeowners’ motions as abandoned.

This rule will be devastating for homeowners trying to save their homes. Their cases will not be looked at individually and cases where lenders are looking to stop or delay the foreclosure process over objections will still be pushed through the system.

A recent change to the system has allowed case managers to perform administrative tasks that judges once performed. This has already caused a lot of cases to be pushed through the system that lenders themselves have attempted to stop.

The good news for homeowners is that the market is on the mend and the backlog of foreclosure cases is just a small portion of what it was in 2009 and 2010. Nonetheless, judges say that a docket of more than 20,000 foreclosure cases creates a crisis in the judicial system.

Click here to read more on Florida’s new proposed rule to expedite foreclosure cases.

Credit, Foreclosures, Timothy Kingcade Posts

Existing Home Sales Rise at a Slow Pace

Posted on April 9, 2015by Admin

The New York Times reported that existing home sales rose slightly in February, approximately 1.2 percent. Economists were hoping to see a sharper increase in sales in the first quarter, but the current lack of inventory has slowed down the pace. The sluggish growth may halt the Federal Reserve from increasing mortgage interest rates in June.

Economists forecasted home re-sales to increase 4.90 million in February; however, the National Association of Realtors said that home re-sales rose to only 4.88 million.

The shortage in inventory is causing a rise in home prices and a decrease in houses on the market. The median price of an existing home was 7.5 percent higher than February of last year.

Traditionally, April to August is referred to as “spring selling season,” the busiest time of year for the housing market. However, economists are predicting that insufficient equity and uncertainty about the economy’s strength may cause potential sellers to stay in their homes longer.

Click here to read more about the slow rise in existing home sales.

Bankruptcy Law, Credit, Timothy Kingcade Posts

More Students Refusing to Pay Back Student Loans

Posted on April 8, 2015by Admin

What started as 15 college graduates refusing to repay their federal student loans has turned into 100, according to the Washington Post. This “debt strike” is the students’ way of pressuring the government into forgiving their student loan debt and the government is starting to take notice.

The Consumer Financial Protection Bureau (CFPB) has invited the disgruntled borrowers to Washington to discuss their demand for loan forgiveness. The CFPB does not have the power to forgive a federal loan, but it does prove lawmakers and regulators are taking these students seriously.

The revolt started a month ago when 15 former Corinthian College students publicly announced they would not pay their student loans because their school broke the law. Corinthian Colleges run Everest Institute, Wyotech and Heald College. It is a for-profit education sector known for high loan defaults and dubious degree programs. The colleges allegedly used deceptive marketing practices and lied to the government about graduation rates, resulting in the loss of federal funding and forcing the institution to shut down most of its schools.

Organizers say that anyone who joins the movement must attend a financial literacy workshop to understand the consequences of not repaying their student loan debt. These students are filing a defense to repayment claim. It is an appeal to the Education Department to discharge the federal loans on the grounds that the school broke the law. The Education Department has the authority to discharge federal student loans when a student’s rights and state law have been violated.

Click here to read more about the student loan strike.

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.

Florida Bar, Foreclosures, Timothy Kingcade Posts

4 Reasons to Sell your Home NOW

Posted on April 7, 2015by Admin

If you are on the fence about selling your home, now may be the time to act. According to Zillow.com, homes sell 15 percent faster in mid-March through mid-April and for two percent more than your average sale.

According to economists, it is a “seller’s market,” and below are four reasons why:

1.) Low housing supply. Perhaps the most significant reason to sell is because there is a lower number of homes on the market. According to the National Association of Realtors, the level of homes for sale in February was approximately 4.6. This means that it would take approximately four and a half months to sell all of the homes on the market. The normal market is a five to seven month supply of homes. A smaller inventory will oftentimes hike up home prices and spark bidding wars, which is great for sellers.

2.) Fewer cash buyers. Cash and investment buyers helped increase home sales over the last two years. Home prices are expected to grow slightly this year but with fewer cash buyers. Economists look for price growth to stabilize.

3.) An increase in interest rates. The Federal Reserve recently hinted that higher interest rates are expected to happen sooner rather than later. While mortgage interest rates remain low, real estate experts predict that buyers will act now to take advantage of the lower mortgage rates.

4.) Rising rent prices. Nationwide, rent prices have increased 15 percent in the past five years in a study conducted in 70 metro areas across the country. Every time there is a jump in rent, more homebuyers enter the market.

Click here to read more on why now may be the perfect time to sell your home.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Home Prices Increase, Outpacing Wages

Posted on April 6, 2015by Admin

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.

Credit, Foreclosures, Timothy Kingcade Posts

Florida Homeowners find a way to “Free” Foreclosed Homes

Posted on April 3, 2015by Admin

States such as Florida, New Jersey and New York have a five or six year statute of limitations on foreclosure cases. This allows cases of foreclosure to potentially be thrown out of court if dragged on for five or more years. Many Florida homeowners are using this statute of limitations to stay in their homes without having to make another payment to their lender.

Many defaulting homeowners continue to live in their homes after the foreclosure process has begun. For example, Bank of America has started the foreclosure process on approximately 20,000 mortgages that have not been paid in five or more years and 90 percent of those homeowners are still living in their homes.

While the issue is still being argued in the court system, Florida attorneys say lenders have five years to file a foreclosure once a homeowner defaults on his or her mortgage. The lenders argue that the clock resets every time a homeowner misses a payment.

Florida attorneys argue that once a foreclosure case is dismissed for technical reasons, the lender cannot re-file a foreclosure on the home because the statute of limitations has passed. However, in these types of cases the lender can keep a lien on the home that must be paid off before it is sold.

Click here to read more on this story.