Month: September 2018

Foreclosures, Timothy Kingcade Posts

Foreclosure Starts Increase in South Florida

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While the rate of foreclosure has declined nationwide, South Florida has seen a recent surge in foreclosure starts.  In fact, the Sunshine State had one of the highest rates of foreclosure starts in the U.S. in July, compared to the same period last year, according to a recent study by Attom Data Solutions. The report showed one in every 1,180 housing units in Florida showed a bank warning of pending foreclosure due to late payment, a 35 percent increase year-over-year.

Foreclosure starts in Miami-Fort Lauderdale-West Palm Beach increased 29 percent in July — the third consecutive month of year-over-year spikes (foreclosure starts went up four percent in May and 35 percent in June).

Does this mean we are about to enter another housing crisis?  Not likely.  The report tracked foreclosure rates in all 50 states as of July 2018, comparing them to the July 2017.  And according to the data, the total foreclosure rates in the U.S. are down 0.5 percent. It is a select number of states, Florida included, that appear to be hit the hardest.

Out of all the metropolitan areas in the U.S., South Florida was one of the top three with foreclosure filings, coming in third to the Los Angeles and Houston metropolitan areas.

This brings the question as to why South Floridians are being hit so hard by foreclosure? The report speculates that the 2017 hurricane season could be the reason for the increased foreclosure filings as many are still struggling to get back on their feet after last year’s hurricanes. The 2017 hurricane season hit many Floridians hard, impacting a total of 4.8 million mortgaged homes. A number of these homes were granted mortgage forbearance extensions, giving the homeowners extra time to catch up, but not everyone received this benefit.

Another factor that has attributed to an increase in foreclosure filings in South Florida include the number of underwater homes entering the real estate market. According to Attom’s report, one in 10 properties in the U.S. have a mortgage that is underwater, meaning the market value is 25 percent lower than the current loan balance. As more underwater homes are put on the market, property values almost always drop. Analysts warn this new wave of foreclosure starts could even impact higher-priced homes, including the abundance of expensive condos in the downtown Miami area.

If you find yourself in over your head when it comes to your mortgage, it is important you contact an experienced attorney for a free consultation.

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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 McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Happens during the Debt Collections Process?

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Debt collections are easily one of the most stressful situations a person can face. Dealing with debt collectors is also one of the most complained about issues, and it is not hard to see why. It helps to know how to handle debt collectors and the protections you have as a consumer.

When you are struggling to make ends meet financially, it can be frustrating to have debt collectors calling you or even worse, the threat of having your wages garnished or a lawsuit filed against you. A strong federal law, called The Fair Debt Collections Practices Act (FDCPA), protects consumers against certain unfair collection practices, which include:

  • Calling you repeatedly to annoy or harass you.
    • Trying to collect more than you owe.
    • Fail to send a written notice of the debt.
    • Threatening violence.
    • Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit).
    • Using profanity and abusive language.
    • Calling before 8 a.m. or after 9 p.m.
    • Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.).
    • Contacting you at your work, after you have requested them to stop.
    • Failing to verify disputed debts.
    • Ignoring cease communication requests.

What Happens During Collections?

The first thing a consumer will notice after an account has been sent to collections is the number of calls from the creditor or the collection agency will increase. Debt collectors will try any means possible to get a hold of the debtor and get payment, even if this means violating a consumer’s rights. The debt collector will contact the consumer at any location possible, including home, cell phone or work number. When it comes to contacting you at work, certain restrictions do exist. The debt collector may not disclose any information regarding the individual’s debt, and if the individual requests that the communication stop at that point at the place of employment, under The Fair Debt Collections Practices Act (FDCPA),  the collector may not contact the person at work further.

The FDCPA also dictates other requirements as to when the collector can call, which is only between the hours of 8 a.m. and 9 p.m. The debt collector is also restricted from using any language or tactics that may be deemed harassing, threatening or abusive.  If the debt collector tries to contact other third parties, such as friends or family members of the individual, they may not disclose information on why they are trying to reach the debtor but can only contact them to get the correct contact information for them.

Validation of Debt

Consumers have the right to request written validation of the debt from the debt collector. In fact, the debt collector is required to notify you that he or she has the right to request this validation within 30 days after receiving the first written communication from the debt collector. Requesting validation of the debt from the debt collector can also be done over the phone. By requesting validation of the debt, the consumer is making the debt collector verify that the debt is actually owed.

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If you have questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

 

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

What Trump Has Done to Undermine Student Loan Debt Reform

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Student loan debt has skyrocketed since President Trump took office. In fact, the amount of student loan debt has increased by $110 billion in the last 16 months to a total of $1.41 trillion nationwide. It is currently estimated that 45 million Americans have student loan debt and this figure is up two million since Trump’s inauguration.

Not only has the number of student loan borrowers increased rapidly, but actions taken by the Trump administration have raised major red flags with those who have fought for student loan reform for years. The Trump administration has methodically dismantled effective debt relief reforms set by the Obama administration in their efforts to curtail abusive lending practices.

During the Obama administration, the student loan industry was forced to give back approximately $750 million in what was found to be abusive marketing and collection practices targeting student borrowers.

Further, the Department of Education Secretary appointed under Trump, Betsy DeVos, has been moving to eliminate Obama-era rules that penalize lenders who engage in abusive student loan debt collection practices.

One of the major changes made by the Trump administration was through the reorganization of the Consumer Financial Protection Bureau (CFPB) and its student loan office. The administration argued this reorganization was routine and made no major change to the agency.

However, one of the major changes was made to the student loan debt office’s watchdog or ombudsman function. This specific office was created to address payment difficulties student loan borrowers were facing. By the time the borrowers got to the point where they were reaching out to this office, they were fielding numerous phone calls, many of them harassing and threatening, as well as lawsuits and collections cases. Other borrowers accused lenders of misleading them about any eligibility for debt relief programs, assistance that is meant to lower the borrower’s payments or have their loans forgiven.

The student loan office was key in a major lawsuit against Navient, Inc., a major student loan service provider and former division of Sallie Mae.  Navient was accused of convincing borrowers to go into expensive repayment plans without telling them of more reasonable and cost-effective options. A trial date has not yet been set, which leads many to question whether one will ever be set.

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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. There are ways to file for bankruptcy with student loan 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief

Credit Card Debt Increasing at An Alarming Rate for the Floridians

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Credit card debt is a problem for many Americans across the country, but for Floridians, this problem is growing at what experts say is an alarming rate. According to recent figures released by the credit reporting agency, Experian, Floridians are using their credit cards more than ever, increasing their debt at the nation’s second fastest rate.

The State of Nevada tops the list of states with the highest credit card rate, but Florida is a close second. In fact, credit card balances have increased 8.59 percent as compared to the same time last year. Currently, the national average is at 6.58 percent, and Florida’s rate is well above this national average.

According to Experian, credit card debt nationally is at an all-time high, reaching $786 billion by the end of 2017. It is up 6.7 percent from 2016. The average American holds a credit card balance of $6,354. The use of store credit cards, mortgage debt and debt overall also increased approximately three percent.

Credit card debt can be a slippery slope and is one of the most common problems facing those with serious financial issues. With exorbitant interest rates, fees and penalties, making only the minimum payment does not even begin to make a dent in the total balance.

Credit card companies design fee and repayment structures to keep you from ever getting out of debt. An unexpected job loss or serious medical diagnosis, even a trip to the emergency room can put significant financial strain on individuals and families who are already facing mounting credit card debt.

Click here to read more on this story.

If you have questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.