Foreclosures

This past June, foreclosures in both Miami-Dade and Broward counties decreased, continuing a long-running decline. The decline dates back to 2012, when the housing market began its steady recovery, following the devastating economic recession.

The property analytics firm CoreLogic, conducted a report to assess the rate of decline in foreclosures in South Florida. The percentage of homes in foreclosure had dropped to just 3.6% in June, down from 3.71% in May. June 2014’s rate had been at 6.29%, indicating a significant drop over the course of a year.

Alternately, Broward County also saw a notable decrease in foreclosures. According to the same report, the foreclosure rate fell to 3.22% in June, down from 3.37% in May. Similar to Miami-Dade’s numbers, Broward County’s June 2014 foreclosure rate was at 5.91%.

The recession took a heavy toll on South Florida’s housing market in particular. Despite the decrease in foreclosure rates, South Florida’s rates are still higher than those in Florida as a whole. Florida’s foreclosure rate is 2.79%. The nation’s foreclosure rate is 1.28%.

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.

Source:

http://www.miamiherald.com/news/business/real-estate-news/article32634810.html

Many consumers who have lost their homes to foreclosure are still plagued with debt.  Most hope to one day pay off their debt but still struggle to make ends meet. Trying to get back on your feet financially can be overwhelming but bankruptcy can help.

One couple decided to help their son out by purchasing a second condo for him. As condo owners themselves, they believed that they could afford the second property because of their good credit. However, it soon became difficult to keep up with the additional mortgage payments. Both husband and wife took on second jobs to cover the costs and even forfeited their real estate investments.

The financial burden became so overwhelming that it began to take a toll on their relationship and even their health. Finally, the couple declared personal bankruptcy. Many consumers in similar situations wonder if they should declare personal bankruptcy and whether or not it is the right decision for them.

There are two main types of personal bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 is the most common type of individual bankruptcy. With this type of bankruptcy, your debts can be fully discharged within 4-6 months. To qualify for Chapter 7, you must pass a “means test,” which is a qualification calculation designed to determine whether or not you have the “means” to repay your creditors. A trustee is then appointed to oversee the process and make sure the proper assets are liquidated in order to repay your debts.

Chapter 13 Bankruptcy

If your income is too high to qualify for Chapter 7 bankruptcy, Chapter 13 bankruptcy may be a better option. This type of bankruptcy will create a debt repayment plan for all, or a portion of your debts. Chapter 13 bankruptcies typically take 3 to 5 years.  If your financial circumstances change during the term of the repayment plan, the bankruptcy can be dismissed or converted into a Chapter 7.

In the past, personal bankruptcy was viewed by many as a shameful last resort. However, in today’s economy personal bankruptcy filings are no longer seen as causing permanent damage to your credit. Now that consumers better understand the real benefits of filing for bankruptcy, more people have conquered their debt while getting the chance to start over.

If you qualify, filing for personal bankruptcy is an effective way to rebuild and restore hope for your financial future. The couple who filed for personal bankruptcy has since settled into a new home. For them, filing for bankruptcy helped them realize there was a light at the end of the tunnel.

If you are in a financial crisis and are considering filing 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.

Source:

http://www.foxnews.com/leisure/2015/08/27/using-personal-bankruptcy-to-hit-reset-button-on-distressed-properties/

Miami U.S. Bankruptcy Judge A. Jay Cristol decided against two precedent-setting rulings, finding it unconstitutional to force homeowners to give up on their foreclosure cases after surrendering property in bankruptcy court. The ruling contradicted those made by Chief Judge Paul Hyman Jr. in the Southern District of Florida and Judge Michael Williamson in the Middle District.

In his August 12 ruling, Cristol sided with a Cutler Bay homeowner in a case against Bank of America. His decision served to complicate the already controversial “surrender” issue linking bankruptcy and foreclosure cases. In 2012, the Cutler Bay homeowner had filed for Chapter 7 bankruptcy protection and received a discharge four months later. Then, the bank reopened the bankruptcy case to force the homeowner to surrender her property and give up on the foreclosure fight.

Cristol believed it to be inequitable to stop homeowners from fighting against a foreclosure on their home after surrendering the property in bankruptcy court.  Other judges like Hyman and Williamson, have been far less understanding. Many have threatened homeowners with sanctions and penalties if they continue fighting their foreclosure after surrendering their home for bankruptcy protection.

These rulings created legal precedents that have divided bankruptcy judges by finding that “surrender” means relinquishing property to “make it available to the secured creditor by refraining from taking any overt act that impedes” foreclosure. Federal bankruptcy law indicates that debtors seeking personal bankruptcy protection must submit a statement of intention within 30 days of filing bankruptcy petitions or before the first meeting of creditors.

In the Cutler Bay case, Bank of America failed to prove that the homeowner had agreed to “surrender” her home in bankruptcy; therefore, the bank’s suit in state court to foreclose on the four-bedroom home could not be supported. According to Cristol, even if a debtor had indicated the intent to surrender their property and then fails to do so, disallowing them to fight a foreclosure action would simply be unjust.

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.

Source:

http://www.dailybusinessreview.com/home/id=1202735530891?

A decline in U.S. home prices accelerated nationwide last month, according to the S&P/Case-Shiller home price index. This is the steepest drop Florida has seen in 16 years. For nearly a year, foreclosure rates in Florida have steadily decreased; however, July’s spike has changed that trend.

According to Miami CBS Local, Florida experienced a decline in foreclosures for the last 10 consecutive months. Realty Trac’s data showed that in July 2015, Florida foreclosures had increased by 16%. The report also revealed that for every 408 homes, one had a foreclosure filing. Realty Trac’s Spokesperson, Ginny Walker termed the sudden increase as a “one month anomaly.” Walker also stated that there may be more Florida foreclosures as the Supreme Court finalizes its ruling on whether the state will have a statute of limitations for foreclosures.

Florida’s southern region has the state’s third highest foreclosure rate, according to the report. This region has also shown an increase in the number of filings when compared with other areas of the state. In the tri-county area alone, 7,285 foreclosure filings are already in progress. This is a 31% increase from June and a 24% increase from July. The report also includes property repossession and notices of auction.

Florida is not alone. Nationwide, foreclosure rates have increased. Some believe this is due to the sudden increase of bank repossessions since 2013.

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.

Source:

http://www.realtytoday.com/articles/29226/20150824/foreclosure-start-spike-florida-months-decline.htm

http://www.wptv.com/news/state/foreclosures-spike-in-florida-after-months-of-decline

The Federal Housing Administration (FHA), which oversees the nation’s most popular reverse mortgage program, has significantly changed the way it will handle reverse mortgages for “non-borrowing spouses” for the second time in 90 days.

Reverse mortgages are available to individuals 62 years of age or older, who own their home. The amount of tax-free funds received is based on the owner’s age, current interest rates and a current home appraisal.  However, a major issue has involved surviving spouses. In the past, many surviving spouses were left out of the loan documentation because they were too young to qualify when the reverse mortgage was signed.

This left the surviving spouse at the risk of foreclosure or having to immediately move out of the home they shared with their loved one.  The FHA’s recent decision will allow surviving spouses to remain in the home and avoid displacement during their lifetime. The ruling specifically pertains to households with reverse mortgages written before Aug. 4, 2014.

FHA guidelines indicate that the lender can assign the reverse mortgage to the U.S. Department of Housing and Urban Development (HUD) under the Mortgagee Optional Election (MOE). In April, the FHA rescinded the MOE and updated it this past June. The amended MOE will allow HUD to eliminate lawsuits brought by non-borrowing spouses.

Surviving spouses will enter what is referred to as an unlimited deferment period where they may remain in their home. Non-borrowing spouses will be required to be added or remain on the title, 90 days after the reverse mortgage becomes due. They also must continue payment of property taxes and insurance, and be married at the time the spouse passed away.

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.

Source:

http://www.akron.com/akron-ohio-real-estate.asp?aID=27386

As the local housing market continues to recover from the economic downturn of 2008, foreclosure rates have decreased in two South Florida counties.

According to a recent report by the property analytics firm CoreLogic, the percentage of Miami-Dade homes in foreclosure for May 2015 was 3.68%. This is positive news, since the percentage had been 3.88% in April 2015. Looking back one year, we see an even bigger decrease from 6.61% in May 2014.

Also, according to CoreLogic’s report Broward County foreclosures have decreased as well. This past May, we saw 3.35%, down from 3.54% in April. Similar to Miami-Dade, there was a significant drop from 6.14% recorded in May 2014.

Although the numbers of Miami-Dade and Broward County foreclosures have dropped, both counties still hold a higher percentage of foreclosed homes than Florida’s statewide numbers. As a whole, Florida’s foreclosure rate is at 2.89%. The U.S. national rate is 1.29%.

Earlier this month, another report revealed that Miami-Dade, Broward and Palm Beach combined hold the sixth highest foreclosure rate in the nation. While the numbers are still considered high, experts remain positive that the amount of foreclosed homes in South Florida will continue to decrease.

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.

Source:

http://www.miamiherald.com/news/business/real-estate-news/article29094796.html

For many, student loan debt is a burden that can wreak havoc on a borrower’s financial situation. Reports show that recent graduates with a bachelor’s degree accumulate an average of $35,000 in both federal and private student loan debt. In an effort to get a better handle on their financial predicament, some are turning to bankruptcy.

After obtaining a master’s degree in intelligence and global security, a Leetsdale man struggled to make ends meet. With $80,000 worth of student loan debt, the 29-year-old decided to file for bankruptcy to help manage his financial situation. In a similar case, a Bradenton, FL woman accumulated $223,000 in student loan debt after obtaining her bachelor’s degree in dental hygiene. With interest rates and fees, the 43- year-old calculated that she would be paying the loan back for the rest of her life.

College funding expert, Mark Kantrowitz explains a simple rule of thumb: your total student loan debt at graduation should be less than your annual starting salary. If it is more, you can expect to encounter serious financial problems as you try to pay down the debt.  Filing for Chapter 13 bankruptcy can help.

While a Chapter 13 bankruptcy cannot discharge student loan debt, the debt can be reorganized and placed on an income based repayment plan, which can reduce the monthly payments substantially. After filing for Chapter 13 bankruptcy, the Leetsdale man’s student loan payments went from $1,000 to $200 a month, while the woman in Bradenton was able to consolidate her debts into a smaller single payment.

However, with a Chapter 13 bankruptcy, the reorganization only lasts for five years. After that, all payments revert back to their normal amounts. Chapter 13 serves to force an income-based repayment plan for five years, which in many cases allows borrowers enough time to get back on their feet. It seems that private student loans are causing borrowers to turn to Chapter 13 bankruptcy as an option because of higher interest rates and limited flexibility.

According to the Consumer Financial Protection Bureau, the cost of both private and public college degrees has skyrocketed and national student loan debt has ballooned to $1.2 trillion. Unfortunately, college graduate salaries have barely increased by comparison. Oftentimes, college graduates are stuck with high monthly payments, low wages, and the agonizing decision of whether to pay their student loans or buy groceries.  Despite the tough circumstances that tend to hinder graduates from qualifying for home mortgages, or properly saving for retirement, many are still fighting to conquer the student loan debt crisis.

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 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.

Source:

http://www.post-gazette.com/business/money/2015/08/02/Student-loan-debtors-using-Chapter-13-bankruptcy-to-buy-time-on-payments/stories/201508020047