September 2016 - Page 2 of 3 - FREE CONSULTATION

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

5 Tips to Bounce Back from a Foreclosure or Short Sale

Posted on September 16, 2016by Admin

More than 9.3 million homeowners lost a home through a distressed property sale from 2006 through 2014, according to the National Association of Realtors (NAR). As rents continue to rise and mortgage rates remain low as the economy continues to improve, some who lost their homes during the housing market crash are now ready to re-enter the market. In fact, a 2015 study by the NAR found that 1.5 million previous homeowners might be eligible to buy within the next five years, based on the time it takes to improve credit scores and save for a down payment.

Here are some tips to remember when re-entering the housing market after a foreclosure or short sale:

Know your options. For homeowners who had extenuating circumstances, such as prolonged income loss or major medical expenses, Fannie Mae has shortened the waiting period to two years after a pre-foreclosure sale – a short sale or deed in lieu of foreclosure – and to three years after a foreclosure. You no longer have to wait seven years after a bankruptcy or foreclosure to purchase a new home.

Start saving. Saving for a down payment and closing costs are the biggest hurdles for would-be home buyers. Create a strategy for savings and avoid impulse purchases. Save your bonus checks, tax refunds and set up a direct deposit to your savings account to help build your down payment.

Repair your credit. The FHA’s minimum credit score requirement for maximum financing is 580. However, other mortgage lenders require a FICO score of 640 or higher. Here are some quick tips to help repair your credit:

Pay off any high-interest debt on time each month;
Do not take out new loans or maximize your lines of credit;
Ask your utility providers or landlord to report your on-time monthly payments to the major credit bureaus.

Beware of predatory lenders. Never sign any contract you are unsure of and if you encounter a lender that tries to sell you a “special” zero-down home loan or any offer that sounds just too good to be true- do not take the bait. Always get a second opinion. Have a real estate attorney, housing counselor or a different lender review the paperwork for you.

Enlist expert help. Not only can housing counselors help you address credit issues and set up a savings plan, they can connect you with state, local and private resources that can help get you into a new home. If you are looking to re-enter the housing market, reach out to a “HUD-approved” housing counselor before you begin. Also, the National Foundation for Credit Counseling (NFCC) provides help to more than 3 million people each year. Find a NFCC-certified housing counselor to discuss your options.

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.

Related Resources:

http://www.bradenton.com/news/business/article95538517.html

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

More than half of all student loan borrowers have seen scams

Posted on September 15, 2016by Admin

Approximately 60% of more than 6,300 student loan borrowers surveyed said they have seen scams for advertisements promising relief from their student loan payments. Nearly 45% of the respondents said at least one of these companies reached out to them directly, according to the survey conducted by the personal finance site NerdWallet, and student loan advocacy group, Student Debt Crisis.

These predatory companies offer to help borrowers with their student loan payments for a fee, but typically provide services borrowers can access from the government for free- or sometimes they provide nothing at all. The more than 40 million student loan borrowers with $1.3 trillion in student loan debt has become a vulnerable part of the population.

In response to borrowers’ struggles, the Obama administration has gone to great lengths to expand the assistance programs borrowers can use to manage their debt. But scammers have used these programs as an opportunity to lure borrowers, advertising their services with government logos and phrases like “Obama student loan help.”

About 9% of the survey respondents said they paid for student debt relief services, spending an average of $613. The Consumer Financial Protection Bureau has taken legal action, accusing various student loan debt relief companies of deceiving borrowers into paying for services they can get for free from the government and keeping borrowers on the hook for a repeating charge illegally.

Consumer advocates say the prevalence of these student loan debt relief scams is reminiscent of the mortgage crisis, where servicers failed to provide homeowners with necessary information and scammers targeted a vulnerable portion of the population.

The Department of Education is taking action and working on revamping the student loan servicing system, giving servicers more of an incentive to work with borrowers, and repay their loans through one government-branded portal. By fixing the current system, borrowers will not be as tempted to turn to these predatory companies.

Click here to read more on this story.

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 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.

Debt Relief, Foreclosures, Timothy Kingcade Posts

‘Zombie’ foreclosures decline across the country- but not in some states

Posted on September 14, 2016by Admin

As the foreclosure crisis winds down, some consequences of the crash continue to loom in neighborhoods across the country. ‘Zombie foreclosures’- properties that are still in the process of foreclosure but remain vacant- fell in the third quarter, and make up 4.7% of all foreclosures- down 9% from a year ago.

Among the top ten states for zombie foreclosures, there have been some big declines: zombies are down 28% in Florida, 26% in California, and 14% in Illinois compared to a year ago. But they are up 6% in New York and 3% in Massachusetts.

The number of vacant bank-owned properties jumped 67% in the third quarter compared to a year ago, to 46,604, according to Attom Data Solutions.

Coincidentally, the states with the greatest number of properties in foreclosure are the states with the greatest number of zombies. These states are also judicial foreclosure states (states that require foreclosures go through a court process), and include New York, New Jersey, Florida, Illinois, and Indiana.

States that go through the court process provide greater protections to homeowners, but take longer to complete. The lengthy process increases the likelihood that a foreclosure will become a zombie. But the recent turn in the housing market and our nation’s economy has given struggling homeowners more of an incentive to fight to save their homes.

Click here to read more on this story.

Credit, Timothy Kingcade Posts

Thousands of Wells Fargo Employees Fired over Phony Accounts

Posted on September 13, 2016by Admin

Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts without customer consent, according to federal regulators. The phony accounts, some dating back to 2011, caused the bank to accumulate unwarranted fees and allowed Wells Fargo employees to boost their sales and increase profits.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), said in a statement.

Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the unethical behavior. Employees went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said.

In addition, Wells Fargo employees submitted applications for 565,443 credit card accounts without their customers’ knowledge or consent. Approximately 14,000 of those accounts incurred more than $400,000 in fees, including annual fees, interest charges and overdraft-protection fees.

Wells Fargo has agreed to pay “full restitution to all victims.” As part of the settlement, Wells Fargo must make changes to its sales practices and internal oversight. The bank agreed to pay $185 million in fines, along with $5 million to refund customers.

Even though the Wells Fargo scandal took place nationally, the settlement in L.A. requires the bank to specifically alert all of its California customers to review their accounts and terminate ones they do not recognize or want.

Click here read more on this story.

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

Banks sell off foreclosure remnants, helping eliminate housing ‘zombies’

Posted on September 12, 2016by Admin

Zombie foreclosures remain a big problem in certain parts of the country. Banks are taking action on those vacant, foreclosed homes and selling them at a fast turnover. In fact, vacant homes in the foreclosure process are expected to drop 9 percent in the third quarter from a year ago, but vacant bank-owned properties are expected to jump 67 percent during the period, according to ATTOM Data Solutions.

Currently, there are just over 46,600 vacant bank-owned properties (known as REOs) littering neighborhoods nationally. More low-priced homes would seem to be a bonus for a housing market plagued with a short supply, but that is not the case in this situation. The vast majority of these zombie foreclosures are in the least desirable markets for investors. New York, Philadelphia and Chicago have the highest number of vacant foreclosures, but they are in some of the most impoverished areas. The homes are also in terrible disrepair.

That means the homes that are left, the zombie foreclosures, require thousands of dollars of work to make them either desirable to renters or buyers. Government-backed mortgage entities like Fannie Mae and the FHA have strict lending requirements when it comes to distressed properties.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Foreclosures

Bank of America Accused of Racial Discrimination as Neglect of Foreclosures Worsens

Posted on September 9, 2016by Admin

The National Fair Housing Alliance (NFHA) and nine local fair housing organizations filed an amended discrimination complaint against Bank of America (BoA) this week. The complaint alleges illegal discrimination by BoA in African American and Latino neighborhoods in six additional cities. The cities include: Columbus, OH; Gary, IN; Minneapolis, MN; Newark, NJ; Tampa, FL; and neighborhoods in suburban Detroit.

“Bank of America’s deliberate neglect of its foreclosures in communities of color creates financial concerns as well as health and safety risks for people living near poorly-maintained foreclosed homes,” said Shanna L. Smith, President and CEO of NFHA. “Too many of these foreclosures have overgrown weeds, unsecured doors or windows, and debris left in the yard, creating perfect breeding grounds for rats, mice, snakes, and mosquitoes. Bank of America is exacerbating the risk of spreading the Zika virus in south Florida by allowing standing water to accumulate in pool covers, tires, and debris around these foreclosures.”

This new evidence formed the basis of the amended complaint. The complaint is now comprised of evidence from 1,267 BoA properties in 30 metropolitan areas and 201 cities throughout the United States.

Evidence obtained during the investigation reveals continued failure by Bank of America to perform simple and routine maintenance on its foreclosures in African American and Latino neighborhoods. This includes the failure to lock or secure doors and windows, remove trash and debris left by former owners, mow and edge lawns, trim shrubs, and cut back invasive plants.

On the contrary, the investigation revealed BoA keeps its foreclosures in white neighborhoods in good condition. Lawns are mowed and edged regularly, and BoA properly disposes of the belongings left behind by former owners. BoA is paid to perform these routine duties in all neighborhoods for all of its foreclosures.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Wells Fargo and U.S. Trustee Program Reach Mortgage Settlement

Posted on September 8, 2016by Admin

The U.S. Trustee Program recently announced that it has reached an agreement with Wells Fargo Bank requiring the bank to pay nearly $3.5 million in remediation to 8,000 homeowners in Chapter 13 bankruptcy.

The settlement arose in the Chapter 13 case of Ernestine C.J. Green, filed Nov. 30, 2011. Chapter 13 bankruptcy allows individuals receiving regular income to obtain debt relief while keeping their home. To do so, the debtor must propose a plan that uses future income to repay all or a portion of his or her debts over a three to five year period.

A debtor with a home mortgage can continue to pay the mortgage, or sometimes the Chapter 13 trustee appointed in the case pays the mortgage with income provided by the debtor’s earnings. Mortgagees or mortgage servicers are required under Bankruptcy Rule 3002.1 to file and serve notices when the mortgage payments change during the course of the Chapter 13 case.

The previous settlement in November 2015 contemplated that Wells Fargo would engage an independent reviewer to identify potential systemic issues in the bank’s operations.

“That compliance monitoring led to the discovery of a deficiency in Wells Fargo’s processes and procedures relating to the certificates of service filed with the PCNs” between 2011 and 2016, Jane Limprecht of the USTP told Bloomberg BNA. The deficiency caused “thousands of homeowners” to receive their change notices with fewer than the 21 days notice required before payment changes could take effect, she said.

The new settlement will provide refunds and credits to affected consumers, and Wells Fargo is required to change its procedures to prevent the problem from happening, again.

Click here to read more on this story.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Bankruptcy Filings Increase in August Breaking the Trend

Posted on September 7, 2016by Admin

Nationwide bankruptcy filings were a little higher in August 2016 compared to a year earlier, breaking an ongoing trend of decline. Bankruptcy filings totaled 68,495 in August, which was an increase from July’s total of 61,340, and was approximately 1.1 percent higher than August 2015’s total of 67,777 (an increase of 718).

Year-to-date, there have been 528,397 bankruptcy filings nationwide for the first eight months of 2016 (about 66,049 per month), down from 2015’s year-to-date total through the end of August of 562,579 (about 70,322 per month), according to August 2016 AACER bankruptcy data reported by Epiq Systems.

August’s total of 68,495 bankruptcy filings was just over half of the peak total for the month of August recorded in 2010 of 135,771. The state with the highest cumulative filings for the first eight months of 2016 was California with 49,564. Illinois was second in year-to-date filings with 36,371. The next three states with the most cumulative filings were Georgia (30,751), Florida (30,640), and Ohio (24,986).

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

From a $150 HOA fee to Foreclosure

Posted on September 6, 2016by Admin

One missed HOA payment could cost a Hillsborough family their home. The family is taking on the Rivercrest Community Association, who just sold their $300,000 home at auction. The family claims they had no warning. Now the fight to save their home could very well leave them homeless.

The family has called their Rivercrest neighborhood home since 2005, when they bought if for around $270,000. The HOA put a foreclosure lien on the house and recently sold it at auction for $19,000. The family’s cut: $14,000.

The family said they had been paying their annual dues, but say they did not get a notice that the HOA was missing a 2009 payment for four years. In that time, $150 turned into $750 then $3,000 in fees. They agreed to a payment plan with HOA lawyers. The HOA’s law firm, Bush Ross landed in a class-action suit accused of violating the Fair Debt Collection Practices Act.

The family received $300 from the settlement and thought they no longer owed the past dues, so they stopped paying. They were scheduled to make a plea to a Hillsborough County judge on August 31. The Clerk’s Office told the media that court documents from April gave the family a month to pay their then-$4,300 balance or the home would be auctioned.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy Basics and When Filing is the Right Answer

Posted on September 5, 2016by Admin

Filing for bankruptcy can be a scary predicament. But we all know financial misfortune can affect any one of us, at any time. Whether it is a difficult divorce, an unexpected health crisis or an extended period of unemployment- bankruptcy can become less intimidating when you know how it works and what to expect.

So how do you know when it is the right time to file for bankruptcy? Here are a few questions to help you assess whether bankruptcy is a viable option.

Are you only making minimum payments on your credit cards?
Are debt collectors calling you?
Does the thought of organizing your finances cause you to have fear and anxiety?
Do you use credit cards to pay for necessities?
Are you considering consolidating your debts?
Are you unsure about the amount you actually owe?

If you answered yes to two or more of the questions above, it’s time to take a closer look at your financial situation. To determine where you are financially, take an inventory of all your liquid assets. Do not forget to include retirement funds, stocks, bonds, real estate, vehicles, college savings accounts, and other non-bank account funds. Calculate a rough estimate for each. Remember, virtually all retirement accounts are exempt from creditors, meaning you get to keep them if you file for Chapter 7 bankruptcy.

Then, collect and add up your bills and credit statements. If the value of your assets is less than the amount of debt you owe, declaring bankruptcy may be one way to get out from under your debt and get a fresh start.

There are many reasons people file for Chapter 7 bankruptcy. Some common reasons for filing for Chapter 7 are unemployment, large medical bills, overextended credit, and marital problems. Chapter 7 is sometimes referred to as a “straight bankruptcy.” Your assets are liquidated to pay off as much of your debt as possible. The cash from your assets is then distributed to your creditors. In approximately four months, you will receive a notice of discharge. For many, Chapter 7 offers a quick, financial fresh start. Many filers quickly rebuild their credit scores and have gone onto purchase homes.

For people who have property they want to hold on to, filing a Chapter 13 bankruptcy may be a better option. This type of bankruptcy is oftentimes referred to as a “reorganization bankruptcy.” Chapter 13 allows people to pay off their debts over a period of three to five years. For individuals who have consistent and predictable annual income, Chapter 13 offers a grace period. Any debts remaining at the end of the grace period are discharged. Once the bankruptcy is approved by the court, creditors must stop contacting the debtor. Individuals can then continue working and paying off their debts, while still keep their property and possessions.

If you are considering filing for bankruptcy, begin with these steps:

Gather all necessary documents. This will document your income, your assets, and all of your debts. Download a copy of your credit report for free to make sure you do not leave anything out. Put all of the relevant paperwork — statements from all of your creditors, deeds and titles to property and vehicles, pay stubs, copies of tax returns — into a folder.
Find an attorney who is an expert in bankruptcy. If you have an attorney you have used before, ask him or her for a referral to a bankruptcy specialist. Do your research online and in person, do not be sold simply by an advertisement. Look at a firm’s testimonials, past experiences with clients and the number of bankruptcy cases they have filed. With a good lawyer and the right information, filing for bankruptcy can give you the financial footing you need to get a fresh start.

Related Resources:

http://www.fool.com/personal-finance/credit/2007/08/31/dont-be-afraid-of-bankruptcy.aspx

https://www.legalzoom.com/articles/bankruptcy-basics-when-should-you-throw-in-the-towel