October 2016 - Page 2 of 3 - FREE CONSULTATION

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Mortgage Fraud on the Rise- Florida Remaining the State with the Highest Risk

Posted on October 17, 2016by Admin

Fraud is on the rise in the mortgage industry, with Florida remaining the state most at risk, according to new data from CoreLogic. More than 12,000 mortgage applications were estimated to have fraud associated with them, according to the company’s 2016 Mortgage Fraud Report.

The mortgage application fraud risk index was up 3.9% year over year from the second quarter of 2015, continuing an upward trend in fraud since 2010.

“This is consistent with the loosening of credit policy after historically tight credit policies post-crisis,” CoreLogic stated in its report. CoreLogic cited a number of factors contributing to the increase in fraud risk, including an increased share of purchase loans, the availability of higher loan-to-value mortgages and the loosening of GSE credit policies.

Florida had the highest application fraud risk, followed by New York, New Jersey, Hawaii and Washington, D.C.

Click here to read more on this story.

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, Debt Relief, Student Loans, Timothy Kingcade Posts

Corinthian College Students Still Waiting for Financial Aid Help

Posted on October 14, 2016by Admin

Eighteen months after Corinthian Colleges Inc. closed the doors of its remaining locations, Heald College, Wyotech and Everest University, tens of thousands of former students are still waiting to receive some form of relief from the student loan debt they incurred to attend the defunct college.

Nearly 80,000 CCI students are facing debt collection related to the loans they took out to attend the schools. Although the Department of Education’s has the ability to provide defense of repayment discharges, which is a process that would eliminate debt based on the college’s alleged fraudulent actions.

The former student’s attempts to obtain discharges have been filled with issues, most stemming from the fact that the process has seldom ever been used and never to the extent it is needed for CCI students.

Due to the alleged fraud, students may be eligible for loan forgiveness of any federal Direct Loans, according to the Department of Education. The investigation process involving federal prosecutors, attorneys general and other agencies is ongoing. However, they have found evidence of fraud by CCI involving the use of inflated job placement rates and pushing students into high cost loans.

A report compiled by the Department of Education found that there are 79,717 people who are eligible to apply for loan forgiveness, but are instead dealing with debt collectors. Of those former students, 30,000 have had tax refunds, tax credits and other benefits seized, while 4,000 have had their wages garnished.

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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.

Credit, Debt Relief, Timothy Kingcade Posts

IRS Warns Taxpayers of the Latest Tax Scam

Posted on October 13, 2016by Admin

The IRS has issued a fraud alert, IR-2016-123, warning taxpayers to watch out for fake emails alleging to contain an IRS tax bill related to the Affordable Care Act just a few days before the October 15th tax filing deadline.

The IRS received numerous reports from across the country of scammers sending a fraudulent version of CP2000 notices for the tax year 2015 as an email attachment. The CP2000 is a notice commonly mailed to taxpayers through the U.S. Postal Service. It is never sent as part of an email.

Below are four indications that you have received a fake CP2000 notice:

The notices are being sent electronically, even though the IRS does not initiate contact with taxpayers by email or through social media platforms.
The CP2000 notices appear to be issued from an Austin, Texas address.
The underreported issue is related to the Affordable Care Act (ACA) requesting information regarding 2014 coverage.
The payment voucher lists the letter number as 105C.

According to the alert, the fraudulent CP2000 notices include a payment request that taxpayers mail a check made out to “I.R.S.” to the “Austin Processing Center” at a Post Office box address.

The IRS urges taxpayers and tax professionals who receive this scam email to forward it to phishing@irs.gov and then delete it from their account.

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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.

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

Government Likely to Forgive Billions in Student Loan Debt – but only if you qualify

Posted on October 12, 2016by Admin

Student borrowers who have been working since 2007 in public service are looking forward to next year. This will be the first time the government will forgive debt under the Public Service Loan Forgiveness (PSLF) program. The program states that individuals who work for ten years in specific careers are eligible to have the remaining balance of their loans forgiven.

These areas include working for:

Non-profit organizations;
Libraries;
Schools;
Certain government jobs.

To qualify, borrowers must make on-time payments on their student loans during the ten years they work in public service. The payments can be made under an income-based repayment plan if the borrower qualifies.

With as many as 25% of working individuals qualifying, the government may have to forgive more than anticipated. More borrowers took advantage of the program than the government had expected. The average amount of loans carried by those in the program is $60,000. About 30% have debt over $100,000. This means the government will have to forgive more than $12 billion in student loans between 2017 and 2027.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What consumers need to know about FICO 9

Posted on October 11, 2016by Admin

If you do not already know, there is a new credit score called FICO 9. The new score comes with some important changes in the way people who have medical debt and other consumer debt are scored. So with all of the different credit scoring models out there- what makes FICO 9 so different?

First, FICO is the most widely used credit score in the country. In fact, 90% of all credit lenders (whether they are offering you a mortgage, car, or personal loan) use the FICO score in some way to determine your credit-worthiness.

More than 64 million Americans have some kind of medical collection record on their credit reports, according to Experian. A staggering 99.4% of medical debts are reported to credit bureaus by collection agencies, damaging consumers’ credit scores in the process. Consumer advocates have long been pushing to make credit scoring models more lenient on people who have medical debt.

With FICO 9, medical collections will be treated differently from non-medical collections, like credit cards. Your credit score will be less damaged by a medical bill you cannot afford to pay as opposed to a department store credit card you ran up the balance on.

This is a big win for consumers. Many people who struggle with medical debt get that way through no fault of their own. Whether you get sick or there is an accident that causes you to miss work, even with health insurance you cannot always control how high your medical bills become.

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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney 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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Pensions SAVED as court rules retirement funds protected in bankruptcy

Posted on October 10, 2016by Admin

In the case Horton v. Henry, the court was recently asked whether savers subject to an Income Payments Order (IPO) would have to surrender their undrawn pension funds in bankruptcy. Normally, under IPO people are forced to give up a proportion of their salary or wages to pay the bankruptcy trustee, but this landmark case may set a precedent.

The High Court initially rejected the argument in 2014, but the decision went to the Court of Appeal. However, the appeal was dismissed on October 7. The case is in strong contrast to the 2012 Raithatha v Williamson verdict, when the judge said savers could be forced to withdraw their 25% tax-free lump sum to pay creditors.

Bankrupt savers can breathe a little easier now. The ruling follows a similar conclusion reached in Hinton v Wotherspoon in May, which said retirees not taking any income could not be forced to withdraw savings to pay any debts.

Congress updated the bankruptcy laws in 2005. Under the current law, virtually all retirement account and pension plan funds are exempt from creditors, meaning you get to keep them if you file for Chapter 7 bankruptcy. With a few exceptions to the rule, the exemption amounts are unlimited, so the entire amount of the retirement account is protected.

Plans subject to this exemption include any ERISA-qualified pension plan, such as:

401(k)s
403(b)s
IRAs (Roth, SEP, and SIMPLE)
Keoghs
Profit-sharing plans
Money purchase plans, and
Defined-benefit plans.

Click here to read more on this story.

Related Resources:

http://www.nolo.com/legal-encyclopedia/retirement-plan-bankruptcy-chapter-7-13-32410.html

Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Consumer Financial Protection Bureau Concerned by Student Loan Servicers’ Practices

Posted on October 7, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) recently expressed concerns over a practice that is being used by some student loan servicers known as “redisclosure” of payment terms. Redisclosure causes a borrowers monthly bill to fall when extra payments are made.

Experts believe that student loan servicers are using the redisclosure tactic to make it harder for borrowers to save money on interest. Once the monthly payment amount is reduced, the term of the loan is extended, causing the borrower to pay more in interest over time.

For example, if a borrower starts out owing $25,000 in student loans payable for a 10-year term with $300 monthly payments and decides to pay an extra $100 each month toward the principal, some loan providers will drop the monthly bill to be less than $300 per month to possibly extend the term of the loan.

“When borrowers pay more than they owe, they expect to save money on interest charges and get out of debt faster. But the practice we highlighted can hold these borrowers back, making it harder and more expensive for student loan borrowers to pay back their loan and get out of debt,” CFPB official Mike Pierce said.

The good news is that you can tell your loan servicer to set your monthly payment back to a requested payment amount, if you discover it has been lowered. You can also tell your service provider what to do with your extra money each month. For example, you can ask that a standing instruction be placed on your account so that the extra money you pay each month goes toward the loan with the highest interest rate.

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Credit, Debt Relief, Foreclosures

Florida Offers Homeowners Facing Foreclosure a Free Assistance Program

Posted on October 6, 2016by Admin

According to CoreLogic, Florida had the highest number of completed foreclosures of any state last year, with a total of 57,000 foreclosed homes. South Florida led the state with 9,603 in September alone. As a result, the Florida Housing Finance Corporation is offering a free statewide assistance program designed to help homeowners facing foreclosure called the Foreclosure Counseling Program.

The program provides struggling homeowners with one-on-one counseling and financial education services. Residents in all 67 counties are eligible.

“Foreclosure is still an issue facing thousands of homeowners in every county of our state,” said Florida Housing Communications Director Cecka Rose Green. “As a participant in the FCP, homeowners can expect to receive extensive housing and financial counseling services that can help them save their homes and become more financially stable.”

The Florida Legislature allocated $10 million from the state’s National Mortgage Settlement funds to implement the program. More than 40 agencies are available to assist interested homeowners across the state.

Click here to read more on this story or click here to visit the Florida Housing website for a full list of participating agencies.

Bankruptcy Law, Debt Relief, Foreclosures

Ditech Financial Fined $1.4 Million for Abusive Debt Collection Practices

Posted on October 5, 2016by Admin

Last week Ditech Financial was ordered to pay the state of Massachusetts $1.4 million to settle charges that the company engaged in “abusive debt collection practices.” The company was allegedly using tactics such as excessive calling and failing to properly notify borrowers of their mortgage information, according to the state’s attorney general.

Ditech Financial, formerly known as Green Tree Servicing, agreed to an “assurance of discontinuance.” This means the debt collection agency will stop making excessive debt collection calls, according to Massachusetts Attorney General Maura Healey.

The order also requires Ditech to provide written notice to borrowers, regarding their right to receive detailed information about any debts the agency sought to collect. According to Healey’s office, Ditech has “routinely violated” state laws since 2012.

Ditech has agreed to change its procedures to prohibit calling borrowers in excess of the number permitted by the debt collection regulations and will implement technological controls to restrict outgoing collection calls when the limit is reached. The payout will be used to address the negative effects of foreclosure, debt collection and other consumer’s protection issues, according to the attorney generals’ office.

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Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Wells Fargo’s Bogus Accounts, Echoes of Foreclosure Abuses

Posted on October 4, 2016by Admin

Wells Fargo’s Chairman and Chief Executive, John Stumpf, sat through hearings with the Senate Committee on Banking, Housing and Urban Affairs on Capitol Hill last month. During the hearings, Stumpf was drilled about the bank’s years long practice of opening bogus accounts for customers and charging fees to do so.

Throughout the hearings, many members of the Senate Committee took an opportunity to scold Stumpf. Senator Jon Tester of Montana told Stumpf, “You have done something I’ve never seen in 10 years, you have united this committee – and not in a good way.”

Financial experts are now saying that Wells Fargo’s latest scandal where they opened fake accounts and charged unknowing customers fees to do so is similar to the some of the elements in the foreclosure scandal. For example, both scams consisted of improper fees and forgeries.

A major difference between the two is that Stumpf has apologized to customers who were affected in the “account opening charade,” however, no such apology was made after the foreclosure scandal.

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