Foreclosures Archives - Page 20 of 56

High Profile Foreclosure Case moves to Florida Supreme Court

Posted on November 30, 2015by Admin

The Florida Supreme Court is in the final stages of determining when the clock starts ticking on mortgage foreclosure cases. In the case of Bartram v. U.S. Bank, the now defunct law firm of David J. Stern filed a mortgage foreclosure lawsuit against Lewis Bartram of Ponte Vedra Beach back in 2006. Years later, after the law firm shut down, with tens of thousands of foreclosure cases in limbo, U.S. Bank missed a case management conference and its foreclosure case was dismissed.

Thanks to the five-year statute of limitations on mortgage foreclosures, the case was revived and Bartram received another favorable judgment. But U.S. Bank appealed that ruling, and in 2014 Florida’s Fifth District Court ruled in favor of the bank, disregarding Florida’s five-year statute of limitations on mortgage foreclosures.

This was a sad day for struggling homeowners and a victory for the banks in Florida who continue to foreclose on loans that defaulted years ago. Many of those loans are referred to as “zombie mortgages,” or a foreclosure that has been started but not completed.

The issue in this case comes down to mortgage acceleration. Most mortgage contracts carry an acceleration clause, which allows the lender to sue for the entire loan amount immediately, starting a five-year clock on the foreclosure process. But the Fifth District ruled that the court’s dismissal of U.S. Bank’s lawsuit in 2011 negated the loan’s original acceleration date that had been set in 2006, effectively resetting the acceleration date to 2011.

Two other Florida courts have issued similar rulings that uphold the Fifth District decision, but a court in Miami recently ruled against it, leaving it up to Florida’s Supreme Court to decide. We will keep you posted – A ruling on this case is expected in the next couple of months.

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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.

A WIN for Florida Foreclosure Plaintiffs!

Posted on November 27, 2015by Admin

Florida homeowners succeeded in getting a judgment in favor of Wells Fargo dismissed, allowing them to reverse a foreclosure action previously in favor of the bank. The case, Hicks v. Wells Fargo, reached the Fifth District Court of Appeals in the State of Florida. According to the complaint, the issue turned on the statute of limitations, with the Fifth District holding that the bank’s foreclosure claim was time barred by Florida’s five-year statute of limitations for foreclosure.

The homeowners claim it all began when an initial default occurred on June 1, 2006. At some point, a prior holder of the note sued to foreclose on Sept. 8, 2006, but the case was voluntarily dismissed in 2008. Then, in 2011, the current note holder (Wells Fargo) sent a notice to accelerate to the borrowers. The second foreclosure action did not occur until 2013, which is seven years past the original default date.

The appellate court agreed with the borrowers that the 2013 foreclosure action by Wells Fargo is “time-barred” by the state’s five-year statute of limitations; however, the bank is not barred from pursuing new or remaining foreclosure claims that fall within the statute of limitations period.

“Despite the previous acceleration of the balance owed in both the instant suit and prior suit, the bank is not precluded from filing a new foreclosure action based on different acts or dates of default not previously alleged, provided that the subsequent foreclosure action on the subsequent defaults is brought within the statute of limitations period,” the court wrote.

So what can be taken away from this case? Florida’s statute of limitations period is sensitive and acceleration actions cannot suffice without a timely foreclosure action. However, not all is lost if a bank fails to file on time, as long as there is a new valid claim to bring forth.

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Foreclosures, Timothy Kingcade Posts

Mortgage Foreclosures & Delinquencies at Lowest Levels Since 2005

Posted on November 19, 2015by Admin

Approximately 0.38% of loans went into foreclosure during the third quarter, according to a report released this week by the Mortgage Bankers Association. This is the lowest rate since the second quarter of 2005. About 3.57% of loans were at least 90 days past due, the lowest rate since the third quarter of 2007.

These numbers can be attributed to a healthy job market and rising home prices, which allows troubled borrowers to sell as opposed to being foreclosed upon. Fewer foreclosures will likely help home prices, because bank-owned homes tend to sell for less. These often empty homes can deteriorate and affect the value of neighboring homes.

New Jersey, New York and Florida continue to have the highest foreclosure rates, but now the foreclosure problem is largely isolated to loans made before 2009.

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Debt Relief, Foreclosures, Timothy Kingcade Posts

$5 Million Foreclosure Fraud Verdict puts National Mortgage Settlement into Question

Posted on November 16, 2015by Admin

A Texas jury’s recent decision to award more than $5 million in damages and fees for the fraudulent foreclosure of a single home has put the $25 billion national mortgage settlement into question.

This month, a jury in Houston awarded $5.38 million to a couple on the grounds that Wells Fargo Bank and Carrington Mortgage Services knowingly submitted false documents to force them out of their home. The financial compensation for the homeowners is as follows: $150,000 in financial injuries, $40,000 for mental anguish, $5 million in punitive damages and $190,000 in attorney’s fees.

There have been approximately 6 million foreclosures since the start of the foreclosure crisis in 2008 and many of them were completed with robo-signed, fabricated or fraudulent documents. If we apply the $5.38 million jury award to all of those loans, the potential cost from the foreclosure fraud scandal is closer to $32.28 trillion!

This estimate represents the extreme edge of the financial hit to the industry. But while the settlement did not preclude individual civil suits like this one, it’s obvious that most victims of foreclosure do not have the financial means to go back and forth in court like this family did.

That is where law enforcement must step in and protect the rights of foreclosure victims lacking these type resources. Looking at this verdict, the $25 billion National Mortgage Settlement has been anything but generous as it represents roughly 0.08 percent of the total possible exposure.

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Foreclosures, Timothy Kingcade Posts

South Florida has highest risk of mortgage fraud in the country

Posted on November 13, 2015by Admin

According to a new report, South Florida is the nation’s capital of mortgage fraud. Miami-Dade, Broward and Palm Beach counties have the highest risk of mortgage fraud in the country reveals the property analytics firm, CoreLogic.

Mortgage fraud typically involves hiding information from lenders so borrowers can obtain loans they would not have qualified for otherwise. The report covered the second quarter of 2015.

The number of inexpensive foreclosed homes in South Florida has made the region more vulnerable and a magnet for fraud. Some local scammers have even been prominent members of the community, including former North Miami Mayor Lucie Tondreau, who was sentenced to 65 months in federal prison for her role in an $11 million mortgage fraud scheme.

But according to the report, this activity is on the decline as the foreclosure inventory dwindles down. The risk of mortgage fraud fell by 9 percent year-over-year in South Florida.

The Miami, Tampa, Orlando, Sarasota and Jacksonville markets accounted for five of the six riskiest areas in the country. (The other being New York City.) Nationwide, the value of fraudulent mortgage applications is estimated at $17.3 billion, according to CoreLogic.

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Foreclosures, Timothy Kingcade Posts

Former Miami Heat Star Glen Rice Facing Foreclosure

Posted on November 9, 2015by Admin

Glen Rice, former Miami Heat player and his ex-wife Cristy, who starred on The Real Housewives of Miami, are facing the loss of a downtown condo they still own together. Miami-Dade County records show the couple quit making payments on the condo they purchased in 2006 as an investment, following Glen’s retirement from the Los Angeles Clippers after 15 years in the NBA.

Property records show Glen and Cristy paid $317,000 for the condo, which is on the 27^th floor of the Neo Vertika building on SW 1^st Ct. in downtown Miami. Reportedly, the couple took out several mortgages on the condo totaling $500,000.

M&T Bank’s loan is supposed to be paid back at the rate of $1,401 a month. According to the lawsuit, the Rices stopped making payments in February. Cristy’s lawyer struck back at the bank with a defense claiming M&T has not followed the proper procedures in the foreclosure attempt.

The Rices’ originally filed for divorce in 2006. The couple also owns a $468,000 suburban home together. Glen Rice played for the Miami Heat from 1989 to 1995.

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Foreclosures, Timothy Kingcade Posts

More military members qualify for foreclosure relief

Posted on October 29, 2015by Admin

Nearly 1,500 additional members of the military are eligible for more than $186 million in foreclosure reimbursements under the Servicemembers Civil Relief Act (SCRA), according to the Justice Department. In addition to other compensation, a total of 2,413 service members and their co-borrowers are eligible to receive more than $311 million.

The five mortgage servicers include:

JP Morgan Chase Bank N.A. (JP Morgan Chase);
Wells Fargo Bank N.A. and Wells Fargo & Co. (Wells Fargo);
Citi Residential Lending Inc., Citibank, NA and CitiMortgage Inc. (Citi);
GMAC Mortgage LLC, Ally Financial Inc. and Residential Capital LLC (GMAC Mortgage);
Bank of America N.A., Countrywide Home Loans Inc., Countrywide Financial Corp., Countrywide Home Loans Servicing L.P. and BAC Home Loans Servicing L.P. (Bank of America).

The compensation is a result of the 2012 settlement known as the National Mortgage Settlement (NMS) and an earlier settlement with Bank of America. It affects foreclosures that took place between January 1, 2006, and April 4, 2012, where the servicer obtained a foreclosure without a judicial proceeding or where the servicer obtained a default foreclosure judgment without filing a proper affidavit with the court stating that the service member was serving in the military.

For mortgages serviced by Bank of America, Wells Fargo, Citi, and GMAC Mortgage, members of the military who qualify will each receive $125,000, plus any lost equity in the property and interest on that equity. Eligible co-borrowers will also be compensated for their share of any lost equity in the property.

Members of the military and their dependents who believe that their SCRA rights have been violated should speak with an experienced foreclosure defense attorney immediately. Additional information about the Justice Department’s enforcement of the SCRA and the other laws protecting service members is available at www.servicemembers.gov.

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Foreclosures, Timothy Kingcade Posts

The Latest Online Scam: Tricking Homebuyers into Wiring Settlement Funds

Posted on October 28, 2015by Admin

You are about to settle on your home. You receive an email from your real estate agent or title company, requesting funds be wired to an account for settlement, which also informs you of a last minute change in writing instructions. Upon the request, you wire the money using the new instructions.

A few days later, you receive a call from your title company, asking why you have not sent your funds for settlement. This is the moment you realize you have been SCAMMED. This wire transfer scheme is nothing new. However, the increase in its sophistication and the prevalence of wire fraud in the real estate industry has prompted the National Association of Realtors (NAR) to issue warning bulletins.

According to the NAR, the hackers are monitoring emails and waiting to determine the best possible scam. They realize these real estate transactions involve large amounts of money right before settlement. Someone in Chicago recently lost $130,000, and in Texas there was a reported loss of $30,000. The scams are getting harder to catch, too. Hackers have improved their grammar and obtain almost identical email addresses to the broker or title company the seller / buyer is working with, making it very difficult to identify the scam.

Below are some tips for buyers and sellers to protect themselves from becoming a victim of wire fraud:

Never send sensitive financial information via email. This includes bank account routing numbers, PIN numbers, security codes, etc.
Prior to doing a wire transfer, you should contact the intended recipient by phone and confirm the wiring information and instructions are correct.
Change your email usernames and passwords on a regular basis.
Clean out your email account. Your email use can establish patterns in your business practice, which hackers can pick up on and use against you.
Make sure you have the most up-to-date firewalls and anti-virus software on your computer. Download these from a trusted source, like your internet service provider.
If you suspect any fraudulent activity, report it immediately to the FBI’s Internet Crime Complaint Center.

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Foreclosures, Timothy Kingcade Posts

Foreclosure Rates Fall, Turning South Florida into a Seller’s Market

Posted on October 27, 2015by Admin

CoreLogic’s most recent numbers show a significant decrease in the amount of foreclosures in the West Palm Beach / Delray Beach / Boca Raton market compared to last year. The foreclosure rate in July 2014 was 4.41% and in July 2015, it fell to 2.28%, according to the property information and analytic company. With fewer foreclosure listings than last year, it’s a good indication that people are buying homes. In fact, the foreclosure rate in the area has been on the decline for the past 18 months.

Real estate experts say that one of the reasons we’re seeing fewer foreclosures is because banks are selling homes with the buyer in mind. Homes are going up in value and buyers are feeling more confident making that big purchase. The increase in demand has caused developers to build new homes and condos. CoreLogic’s data revealed that Florida, as a whole, is behind the national foreclosure rate on average. Sitting at 2.71% compared to 1.26% across the U.S.

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Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Homeowners get Foreclosure Dismissed; Could Own Home Free and Clear

Posted on October 20, 2015by Admin

A New York judge recently dismissed a foreclosure case against a mother and daughter, ruling that the bank missed New York’s six-year deadline to file its lawsuit. The decision could mean mortgage payments disappear and the two own their home free and clear, more than eight years after their lender foreclosed on them.

State Supreme Court Justice William Rebolini decided in favor of the family, writing that U.S. Bank National Association was “untimely” in suing last year to take back the home. In May 2006, the family took out a $250,000 mortgage to fund home repairs, but shortly after one of the relatives left the home and the owner underwent two difficult surgeries. As a result, payments were missed.

The owner and her daughter applied for loan modifications four times, but lenders who bought and sold the loan denied their requests. A lender that previously held the mortgage sued to foreclose in March 2007, demanding the entire mortgage balance due. By calling in the loan, the clock started ticking on New York’s six-year statute of limitations for such lawsuits.

The lender could have used a legal tactic to stop the six-year clock, but failed to do so. In this case and others like it, the statue of limitations exists for a reason and there is an obligation on the part of the lender to bring the action on a timely basis. This seems to be a growing trend, as a number of homeowners in New York are asking judges to dismiss foreclosure cases because the statute of limitations has expired. Banks can avoid getting themselves in this situation by giving homeowners a loan modification, helping them cure their default.

In Florida, some courts have ruled lenders cannot bring foreclosures if certain criteria are met: the lender already filed for foreclosure, demanded payment of all the money borrowed, and lost its foreclosure case. If it fails to file another action within five years of the first lawsuit, the lender can no longer foreclosure and evict the residents, some courts have ruled.

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