Foreclosures Archives - Page 16 of 56

New Jersey Senator Introduces New Bill to Address Zombie Foreclosure “Crisis”

Posted on July 21, 2016by Admin

Sen. Bob Menendez, D-NJ, recently introduced a bill to the Senate that addresses the nationwide crisis – zombie foreclosures. The bill is called “Preventing Abandoned Foreclosures and Preserving Communities Act of 2016.” This crisis refers to homes that sit vacant, sometimes for years, while in “legal limbo” throughout the process of foreclosure. The zombie foreclosure crisis has negatively impacted economies across the country by lowering property values in neighborhoods. According to Menendez, the vacant homes “scare away new homebuyers and investors,” which eventually impacts surrounding neighborhoods, and so on.

While introducing the new bill, Sen. Menendez stated that New Jersey had the highest foreclosure rate in the country in 2015, with 35,000 foreclosure filings. He went on to say that it also has the highest rate of vacant “zombie foreclosures,” with 4,003, according to RealtyTrac. However, his new bill would address the zombie foreclosure crisis across the country.

According to Menendez, his new bill would:

Require mortgage servicers to tell borrowers at the beginning of the foreclosure process they can remain in the home until state law requires them to leave
Require the servicer to make clear to the borrower that he or she remains responsible for the payment of any taxes, assessments, and other fees during the foreclosure process
Require the mortgage servicer to make prompt notifications to both the borrower and the municipality where the property is located when it walks away from the foreclosure
Prohibit mortgage servicers on loans backed by Fannie Mae and Freddie Mac and insured by the Federal Housing Administration from walking away from an initiated foreclosure unless the servicer releases the lien on the property and provides proper notice to the borrower and municipality
Require the Government Accountability Office and the CFPB to study and report on the prevalence and impact of abandoned foreclosures

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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 website at www.miamibankruptcy.com.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

FTC Shuts Down Multi-Million Dollar Mortgage Relief Scam

Posted on July 18, 2016by Admin

The Federal Trade Commission (FTC) shut down multiple mortgage relief schemes conducted by a string of California-based law firms that ultimately scammed struggling homeowners out of millions of dollars. The law firms were charging homeowners thousands of dollars and falsely promising that their services would allow them to stay in their homes.

Homeowners were told they could join a “mass joinder” lawsuit against their mortgage lenders, claiming mortgage fraud and void consumer’s mortgage notes. The attorneys, operating as Brookstone Law Group, Brookstone Law, Advantis Law and Advantis Law Group, promised homeowners they would discharge their mortgage entirely, provide monetary relief or both. However, the firms never followed through on their promises.

According to the FTC, the promise of a “mass joinder” lawsuit is a common mortgage relief scam. Mass joinder lawsuits are different from class action lawsuits because each individual defendant is required to prove his or her case in court. The FTC stated that although the attorneys did file lawsuits in this case, most were never pursued and ultimately dismissed.

The FTC’s report stated the attorneys mailed out materials including the homeowner’s name, loan amount and property identification number with statements such as, “Your home will be sold at Auction unless you take immediate action.”

Homeowners who proceeded with the case were initially charged $895 to join the lawsuit and receive a “legal analysis.” Those whose legal analysis showed they had a good case were told they were “likely or certain” to win a lawsuit against their mortgage lenders and would recover at least $75,000. The firms would then charge homeowners thousands of dollars and monthly fees and failed to deposit the fees in client trust funds as required by law.

Most of the homeowners were never added as plaintiffs in a case and some were added months later. Their questions went unanswered and their requests for refunds were allegedly refused. According to the FTC’s report, the mortgage relief scheme netted at least $15 million.

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Debt Relief, Foreclosures, Timothy Kingcade Posts

Millions of Americans are making a Come Back after the Housing Crisis

Posted on July 8, 2016by Admin

Millions of Americans who lost their homes to foreclosure during the housing crisis are now getting a second chance at home ownership. Fortunately for our nation’s economy, time heals credit reports. The improvement in credit scores means more Americans will have the ability and means to once again apply for loans, and not just home loans.

“Improving credit scores might entice households to start borrowing more in general,” said Ralph McLaughlin, chief economist at real estate search engine Trulia.

That, combined with an improved rate of employment and bigger increases in pay, could give consumer spending, which accounts for almost 70 percent of the U.S. economy, an increase over the next couple of years.

The number of consumers with a new foreclosure added to their credit reports peaked at about 566,000 in the second quarter of 2009, according to data from the Federal Reserve Bank of New York.

The home ownership rate for consumers who are 35 to 44 years old, which includes members of the generation most hurt by the housing crisis, has risen for two straight quarters on a year-over-year basis, U.S. Census data show. That is the first time this has happened in two years and another sign some of the previously foreclosed-upon buyers are returning to the market.

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Debt Relief, Foreclosures, Timothy Kingcade Posts

RealtyTrac Reports Foreclosure Activity “Flat” in May

Posted on June 24, 2016by Admin

Foreclosure filings, which include default notices, scheduled auctions and bank repossessions were reported on 100,841 properties in May, a number virtually unchanged when compared to April and a decrease of 21% from a year ago. RealtyTrac’s U.S. Foreclosure Market Report reveals May was the eighth consecutive month with a “year-over-year” decrease.

Florida, New Jersey, Maryland, Delaware and Nevada were the states with the highest number of foreclosure filings for the month.

A total of 42,279 properties started the foreclosure process in May, down 3% from the previous month and down 18% from the previous year, according to RealtyTrac’s report. It was the 11th consecutive month with a year-over-year decrease.

A total of 34,014 bank repossessions were completed in May, up 1% from the previous month but still down 24% from a year ago. It was the third consecutive month with a year-over-year decrease in bank repossessions.

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

Miami Bankruptcy Attorney Timothy S. Kingcade Selected for Inclusion in Florida Super Lawyers 2016

Posted on June 14, 2016by Admin

Managing Shareholder, Timothy S. Kingcade of the Miami-based bankruptcy and foreclosure defense law firm of Kingcade & Garcia, P.A. has been recognized in the area of consumer bankruptcy law in Florida Super Lawyers Magazine. This is the third year in a row Mr. Kingcade has been selected to the Florida Super Lawyers list. The prestigious honor is awarded to only five percent of lawyers in the state.

“It is a true honor to have received this award,” said Timothy S. Kingcade. “It is a testament to the commitment my firm and I make every day to each and every one of our clients.”

Attorney Kingcade practices exclusively in the field of bankruptcy law, handling Chapter 7 filings and foreclosure defense cases for the Southern District of Florida. As an experienced CPA and proven bankruptcy attorney, Timothy Kingcade knows how to help clients take full advantage of their rights under bankruptcy protection to restart, rebuild and recover.

Super Lawyers is a listing of outstanding lawyers who have attained a high degree of peer recognition and professional achievement, representing the top 5% of Florida lawyers. The goal of the Super Lawyers selection process is to create a credible, comprehensive and diverse listing of lawyers to be used as a resource to assist lawyers and sophisticated consumers in the search for legal counsel.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care for the financially disenfranchised. All partners and associates at Kingcade & Garcia, P.A. specialize in consumer bankruptcy and foreclosure and have dedicated their practices to this area of the law. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Foreclosures, Timothy Kingcade Posts

Zombie Foreclosures: What Homeowners Need to Know

Posted on June 9, 2016by Admin

If you are facing foreclosure, it’s a good idea to not move out of your home too quickly- you could be haunted by what’s called a “zombie foreclosure.” Some homeowners quickly pack up and leave after receiving a foreclosure notice because they assume the bank will take over the property immediately. However, in some cases, the bank does not always move so fast. While the bank is finishing up the foreclosure process, the home can sit vacant for months while still in the homeowner’s name.

A zombie foreclosure can lead to devastating consequences for the homeowner. Oftentimes, these occur in low-income areas where the lender is not too anxious to assume the responsibility and upkeep of the property, along with paying the taxes. If squatters occupy the property or it falls into severe disrepair, the bank may ultimately wash its hands of the property.

Other times, the property may have been part of the robo-signing scandal and the foreclosure cannot be completed, the sale was never held, the paperwork was lost, or the title was never officially transferred into the new owner’s name. All of these circumstances result in the title remaining in the foreclosed homeowner’s name.

The states with the highest number of zombie properties include Florida, Illinois, New York and New Jersey, according to RealtyTrac. Zombie foreclosures can spell disaster for homeowners. Since the title is never transferred out of the foreclosed homeowner’s name, they are on the hook for certain debts and expenses like property taxes, HOA dues and maintenance fees for upkeep of the property. These debts can go unpaid for years, without the homeowner even knowing they have a legal obligation to pay them, further damaging their credit.

If you leave your property and the title is never transferred out of your name, the following things can happen (among others):

The tax collector can come and collect from you back property taxes;
The HOA may file a lawsuit to recover unpaid dues;
You can incur fines for not complying with housing codes and ordinances;
You can incur bills for yard maintenance, repairs, trash and graffiti removal, etc.

So how can homeowners avoid a zombie foreclosure? Remain in your home for as long as possible during a foreclosure. You will be less likely to become a victim of a zombie foreclosure if you stay through the entire foreclosure process and wait for an official notice to vacate before moving out. Confirm the title has been transferred out of your name. You can do this by going to the county recorder’s office where the property is located to make sure a new deed has been recorded. You can also check your local county recorder’s website. It is important to do this because in some cases the bank is not legally required to inform you that the foreclosure has stopped.

Related Resources:

http://www.nolo.com/legal-encyclopedia/zombie-foreclosures.html

Debt Relief, Foreclosures, Timothy Kingcade Posts

How to Get a Second Chance at Home Ownership after Foreclosure

Posted on May 30, 2016by Admin

More than 9.2 million Americans lost their homes to foreclosure between 2006 and 2014, according to the National Association of Realtors. For many of those individuals, enough time has passed that they may once again qualify for another mortgage.

How long you have to wait varies by the program. Generally, you will need to wait seven years after a foreclosure or short sale to qualify for a conventional mortgage, three years to get a Federal Housing Administration or U.S. Department of Agriculture loan and two years to get a loan backed by the U.S. Department of Veterans Affairs.

But those time periods can be shortened to as little as one year for a VA or FHA loan and three years for a conventional loan, if borrowers can demonstrate their defaults were the result of a significant hardship from which they have now recovered.

Here are five tips to remember when seeking a mortgage after a foreclosure or short sale:

Your lender will see a different credit report. The report lenders pull when you apply for a mortgage is not the same report you receive from servicers that provide credit reports to consumers. Consumers are often provided with a “stepped-down version.” The credit score is not the end all, be all. There are other factors that can potentially slow the loan. You can figure at least 620 is needed for a conventional mortgage and 580 is necessary for an FHA loan.

On-time payments are important. Re-establishing your credit is one of the most important qualifiers for getting a mortgage after a foreclosure or short sale. Lenders want to do everything they can to avoid lending to someone who will default, again- so they look closely at your bill payment history since the foreclosure.

You will need to demonstrate job stability. If you have a traditional job for which you receive a W-2 form, your lender will verify your income with your employer. People who work several part-time jobs or are self-employed, will face additional scrutiny and will have to demonstrate their income with several years of tax returns and additional documentation.

You will need to document everything. Since the housing crisis, the documentation required for mortgages has increased significantly. Anything a customer puts on the mortgage application will be verified, particularly financial information.

Not all lenders are the same. Each lender has different requirements. There is no one size fits all when it comes to mortgage lender requirements. The basic guidelines are set by FHA, VA, USDA, Fannie Mae and Freddie Mac, but individual lenders and even individual underwriters may interpret these in different ways.

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Foreclosures, Timothy Kingcade Posts

Wells Fargo Pays $70 Million Penalty for Foreclosure Mistakes

Posted on May 27, 2016by Admin

Wells Fargo & Co. has agreed to pay a $70 million penalty ending the bank’s five-year fight to settle claims over foreclosure mistakes following the 2008 financial crisis.

This week, U.S. regulators announced the fine as part of an agreement that also frees the nation’s biggest mortgage lender from loan-servicing restrictions imposed last year. Wells Fargo has been accused of failing to move fast enough to fix deficiencies outlined in a series of settlements over improper activity including so-called robo-signing of foreclosure documents. The Office of the Comptroller of the Currency (OCC), also identified more recent problems, including faulty payment-change notices filed in bankruptcy courts and faulty escrow calculations.

The bank neither admitted nor denied wrongdoing in the OCC agreement.

Five years ago, Wells Fargo and most of the other largest U.S. mortgage servicers agreed to resolve allegations that they mishandled loan papers and fraudulently endorsed legal papers used in foreclosures after the crisis. Regulators amended that accord in 2013 after deciding the original plan failed to help affected borrowers.

A year ago, the OCC imposed new restrictions on Wells Fargo, JPMorgan Chase & Co. and four other companies, blocking them from buying mortgage-servicing rights because they had not yet met the demands of the foreclosure settlement.

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Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Don’t think you can buy a home after bankruptcy? Actually, you can.

Posted on May 24, 2016by Admin

There are a number of myths associated with bankruptcy; the inability to purchase a home is one of them. Bankruptcy is certainly not the end of homeownership. In fact, all major mortgage programs available today- conventional, USDA, VA and FHA home loans-have established guidelines that allow post-bankruptcy buyers to qualify for a mortgage.

Each loan type has its own waiting period requirement after bankruptcy. Waiting periods for the four major types of loans are as follows:

FHA loans: 2 years
VA home loans: 2 years
Conventional mortgages: 4 years
USDA home loans: 3 years

While these are the “standard” guidelines, you may qualify for a conventional or FHA loan even sooner. Both of these loans have exceptions for “extenuating circumstances” or one-time events that caused income loss and were outside of the homeowner’s control.

In this case, an applicant can be approved for a conventional loan just two years after bankruptcy, and an FHA applicant can receive approval after one year in the “Back to Work Program.”

Below are some quick and easy ways to re-establish your credit after bankruptcy.

Re-establishing your credit involves opening credit accounts and paying them on-time for at least 12 months. These credit accounts must be kept open and active.
Begin with a credit card. Use it for gas and groceries and pay it down every month. Keep a small balance on it so the credit bureaus can see that it is active, but keep the balance below 30% of your available balance.
The credit bureaus value a diverse credit profile, more than just credit card accounts. Personal loans, student loans and car loans are other types of credit. Credit bureaus want to see that you can manage your credit responsibly.
Lenders may look for non-traditional credit. For example, 12 months of cell phone bill, gym membership, car insurance, cable bill, etc.

With proper planning, you can re-establish your credit to the level at which you can qualify for a home loan.

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Credit, Debt Relief, Foreclosures

New Reverse Mortgage Updates Benefit Borrowers and Lenders, according to HUD

Posted on May 13, 2016by Admin

According to a new report issued by the Department of Housing and Urban Development (HUD), the latest reverse mortgage updates on the rules and laws have benefited both borrowers and lenders. New changes to the Home Equity Conversion Mortgage program are intended to: assure that foreclosures and defaults are limited; they are also designed to prevent lender abuse; they help assure that borrowers can actually afford to upkeep the home (i.e. – home insurance and property taxes on these loans that are not secured on the basis of income or credit).

The changes mandate that borrowers demonstrate they have the financial ability to maintain the home and pay the property taxes and home insurance. If the borrower is not able to provide proof of this, lenders are not allowed to approve the loans.

The draw from the loans by borrowers has decreased since the new rules took effect. This lesser draw means a decrease in risk to both lenders and borrowers, and assures (that in most cases) there is something to be passed on to heirs from the estate in the future.

Reverse mortgages are a special type of home loan that is offered to homeowners age 62 and older. They require that you have substantial equity in your home and that you are able to pay annual property taxes, home insurance and general upkeep. There are no income or credit requirements outside of these rules. Other requirements include that the home remains your primary residence and that you seek third-party credit counseling before you take out the loan.

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