Foreclosures

Private equity and hedge fund firms are capitalizing on the remaining inventory of the mortgage crisis – more than 100,000 troubled mortgages have been purchased. As the housing market continues to recover, these new financial players had previously been welcomed as offering more flexible terms for delinquent borrowers than big banks.

Recently, these firms have come under fire.  Housing advocates and attorneys who represent borrowers contend that private equity firms and hedge funds are too quick to push homes into foreclosure and have become less helpful than banks in negotiating loan terms.  Their actions have also gotten the attention of Federal and state lawmakers who are questioning why federal agencies are selling loans at a discount of as much as 30 percent to these firms.

An investigation by The New York Times of housing data, court filings, and interviews with borrowers and attorneys reveal a pattern of complaints against companies like Lone Star Funds, a $60 billion private equity firm.  It is reported that Lone Star has been quick to begin foreclosure proceedings, whether they had bought a delinquent mortgage at a federal auction or directly from a bank.   The company reportedly “dealt harshly” with borrowers’ requests for loan modifications.

A closer look reveals Lone Star’s biggest deal — a bundle of 17,000 distressed mortgages that had an unpaid balance of $2.96 billion. With money from public pension funds, Lone Star bought those mortgages in the summer of 2014 at an auction held by the Department of Housing and Urban Development.

Not all of private equity’s push into the distressed mortgage market has been negative. Thousands of homes that were abandoned by borrowers are now back on the market.  Still, many housing advocates argue that federal housing agencies should make it easier for nonprofit organizations to have a better chance to compete for troubled mortgages, because these groups would work harder to avoid foreclosures.

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.

Foreclosures have fallen to their lowest level in almost eight years. This can be attributed to the steady increase in jobs and rising home prices. According to the real estate trend tracking company CoreLogic, there were 38,000 completed foreclosures in July. This figure is down 6.2% from June’s numbers and it is the lowest since December 2007.

July’s figure shows a significant 67.9% decrease from the peak of 117,225 completed foreclosures back in September 2010. Anand Nallathambi, president and CEO of CoreLogic said, “As we enter the final months of 2015, the housing market continues to gather steam buoyed by improving economic conditions and the release of pent up demand for homeownership.”

Nallathambi also stated that the housing market’s recovery is reflected in the decline of delinquency and foreclosure rates. In July, the national foreclosure inventory, tracked homes at varying stages of foreclosure and found approximately 469,000. This was equivalent to 1.2% of all homes with a mortgage, which was far less than the 650,000 homes (1.7 %) in July 2014. The total decline over the past year for the national foreclosure inventory was 27.9%.

Before 2007’s housing market crash, foreclosures averaged at 21,000 per month nationwide from 2000 to 2006. Following the financial crisis that began in September 2008, there have been approximately 5.8 million completed foreclosures nationwide. Mortgages in serious delinquency (90 days or more past due) have also significantly declined by 23% over the past year.

States with the highest number of completed foreclosures from July 2014 to July 2015 were Florida with 98,000, Michigan with 47,000, Texas with 33,000, California with 27,000 and Georgia with 27,000. These states accounted for nearly half of all completed foreclosures nationally. Four states and the District of Columbia had the highest percentage of foreclosure inventory of all mortgaged homes: New Jersey with 4.8%, New York with 3.7%, Florida with 2.7%, Hawaii with 2.5% and the District of Columbia with 2.4%.

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://thehill.com/policy/finance/252920-foreclosures-nearing-eight-year-low

Fannie Mae has announced that it will increase the maximum number of allowable days for a foreclosure sale in 33 states, including Florida. According to the announcement, Freddie Mac also increased the maximum number of allowable days for the following jurisdictions: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Nevada, New Mexico, New Hampshire, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.  Both enterprises have indicated that these new foreclosure timelines apply to all foreclosure sales completed on or after Aug. 1.

Florida’s new foreclosure timeline went from 810 allowable days to 930 days, as of August 1, 2015. This gives homeowners a 120 day increase. The maximum number of allowable days represents the maximum allowable period between the due date of the last paid installment and the completion of the foreclosure sale, according to Freddie Mac. The allowable time frame also represents the required time frame for foreclosure proceedings that are deemed “routine” or “uncontested.”

These allowable time frames reflect the legal requirements of the applicable jurisdiction, and consider time delays that might occur outside of the servicer’s control. If a foreclosure sale should exceed the indicated maximum number of allowable days and an adequate explanation for the delay is not given, Freddie Mac will require the servicer to pay a “compensatory fee.”

Fannie Mae and Freddie Mac have also extended the state foreclosure timeline compensatory fee assessments for the District of Columbia, Massachusetts, New York (including New York City), and New Jersey, until Dec. 31.

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.housingwire.com/articles/34989-freddie-mac-joins-fannie-mae-in-extending-foreclosure-timelines

http://www.housingwire.com/articles/34983-fannie-mae-extends-foreclosure-timelines-in-33-states

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