Foreclosures

RealtyTrac reports that zombie foreclosures have dropped across South Florida. In the past, homeowners were forced to abandon their homes during foreclosure proceedings—creating the term “zombie foreclosures.” However today, thousands of homeowners remain in their homes while foreclosure proceedings take place.

In last year’s second quarter, approximately 7,021 residents left their homes behind once the foreclosure process began. This was 46% less than the year before, according to RealtyTrac’s Zombie Foreclosure Alert. Increased consumer awareness and knowledge of the law appears to be the reason for this rapid change. Unless the home has sold, homeowners are not required to move out; therefore, they opt to stay.

The average value for owner-occupied homes is $251,236, while zombie homes averaged at $195,856. This data indicates that the foreclosing bank would actually benefit from the home being occupied during the process. In the past, the number of zombie foreclosures was negatively affecting neighborhoods across the nation. Overgrown yards, disrepair and code violations only caused problems for lenders seeking to recover the property.

With homeowners staying put and keeping the home maintained, lenders are eager to offer loan modifications to keep borrowers in their homes. The foreclosure process is very lengthy in South Florida, and lenders seem to be fed up. Statistics reveal that on average, a foreclosure in Florida can take over 2½ years to litigate. The decline in zombie foreclosures is good news for all as the economy slowly improves.

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=1202731962896/RealtyTrac-Zombie-Foreclosures-Decline-in-South-Florida?mcode=1202617073880&curindex=3

Home values in the U.S. are growing at such a slow rate, many struggling homeowners may be stuck with their mortgages for years to come. Zillow’s Negative Equity Report sheds some light on the situation. When a homeowner’s mortgage balance is higher than the fair market value of their property, it is called an “underwater” mortgage. Of those homeowners who were underwater, nearly half—about 4 million—owed 20% or more of their home’s actual value. In 2015’s first quarter, 15.4% of homeowners had negative equity in their home. While this is a decrease from 16.9% in 2014’s last quarter, the outlook is grim for homeowners who want to sell. Also, the report showed that lower-end homes were more than three times as likely to have negative equity as higher valued homes.

With spring and summer marking the busiest time of year for buying and selling homes, there has been a spike in demand. Unfortunately, many homeowners remain stuck because they cannot afford to sell at the buyers desired price. While it is great news to see the amount of negative equity decreasing across the nation, the extent of negative equity is a concern for many. Millions of Americans’ homes are so far underwater, they may not be able to regain equity for a decade or longer, according to Zillow’s Chief Economist, Dr. Stan Humphries.

The fact that the highest amount of negative equity is found in lower-valued homes means that this imbalance will directly affect future affordable home sales. With so many homeowners stuck underwater, the housing economy will face inflated home prices, limited inventory and a strained growth on home values. Among the 35 largest housing markets, Miami and Detroit were shown to have the greatest amounts of homeowners underwater. Both Miami and Detroit showed more than 60% of homeowners with negative equity and more than 20% percent of those homeowners were underwater.

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.nhbr.com/June-26-2015/4-million-US-homeowners-still-underwater/

http://www.prnewswire.com/news-releases/more-than-half-of-underwater-homeowners-are-nowhere-near-re-surfacing-300098266.html

There are 13 states reported to have a higher foreclosure rate than the nation’s average. Of the states that held higher foreclosure rates than the U.S. average, most were located in the Midwest and the South. Florida ranked number one on this list. A recent report by the housing-data company RealtyTrac, sheds more light on these figures.

According to the report, our nation’s foreclosure rate has increased by 1%, from April to May of this year. Compared with May 2014, we have seen a 16% increase. For every 1,041 homes in the U.S., one has had a foreclosure filing for May 2015. This includes notices of default, scheduled auctions and bank repossessions. With the highest foreclosure rate of any state, including the District of Columbia, Florida has remained in this position for the past three months. In Florida, 1 out of every 409 housing units was in foreclosure.

Rising foreclosure rates can be attributed to annual increases in bank repossessions, as states across the nation continue to sift through the multitude of distressed properties. Both lenders and courts have been pushing through stubborn foreclosure cases that have been remained stagnant for years, but these efforts have been exhausted.

Foreclosure starts (the the first foreclosure filing on a property) have also increased by 4% from 2014, but they remain lower than reported pre-crisis levels from 2005 and 2006. Foreclosure starts did show a decline in May, but completed foreclosures continued to increase.

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.usatoday.com/story/money/personalfinance/2015/06/21/credit-dotcom-states-highest-foreclosures/71264498/

The Office of the Comptroller of the Currency (OCC) recently enforced restrictions on the mortgage-servicing operations of six banks, including J.P. Morgan Chase & Co. and Wells Fargo & Co. The Office claimed that these banks were not properly complying with enforcement orders, regarding past home foreclosure abuses. According to the OCC, these banks failed to meet all the requirements of consent orders, which had been issued in 2011. These orders were focused on foreclosure-processing mistakes. The 2011 orders sparked controversy regarding America’s major banks’ foreclosure files, to determine how many borrowers should be compensated. In 2013, the OCC and the Federal Reserve stopped this review before it was completed and regulators settled with 15 banks related to foreclosure problems.

Other banks have also been slapped with penalties and fines for failing to complete required corrective actions. These banks included EverBank Financial Corp., HSBC Holdings PLC, Santander Holdings USA Inc. and U.S. Bancorp. While the issues found by the OCC varied by each bank, each instance included unresolved problems with the information systems that the banks used to track foreclosure and loan modification activities, and the quality of communication with borrowers. There was also a lack of adequate follow up regarding the loan modification and foreclosure process, and servicing duties handled by third-party contractors.

The six banks in question now have restrictions placed on their mortgage servicing operations, as well as limitations on the banks’ ability to acquire residential mortgage servicing rights or outsource their existing mortgage servicing rights. In recent years, a great number of banks have backed out from the mortgage-servicing industry. However, according to the OCC officials, mortgage servicing remains a “significant activity” for each of the six banks. It also continues to remain a major part of the business strategy for many institutions.

J.P. Morgan claims to have made significant progress, with plans to complete their remaining items by summer’s end. As for HSBC and Wells Fargo, they will receive the harshest restrictions. OCC officials call this a reflection of both the number and severity of the outstanding problems with these two banks. Wells Fargo president Mike Heid, claims, “We will continue to work with the OCC to address the remaining items, and we have in place an action plan to complete that work in the coming months.”

The National bank units of Bank of America Corp., Citigroup Inc. and PNC Financial Services Corp. have had their consent order lifted by the OCC. To date, the OCC program has distributed more than $2.7 billion to more than 3.2 million borrowers from banks overseen by the regulator, representing more than 90% of the total funds available.

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.wsj.com/articles/u-s-restricts-six-banks-over-mortgage-problems-1434553589

Recently, a federal judge granted final judgment against a local Florida law firm and its associates for operating a massive foreclosure relief scam. The Consumer Financial Protection Bureau (CFPB) and the state of Florida claimed that the firm and its affiliates had fraudulently charged fees from approximately 2,000 clients who were seeking foreclosure relief. The firm was sued by CFPB and the state of Florida for violating both Florida law and a federal rule concerning mortgage assistance.

$11.7 million of unlawful advance fees were collected by the law group and its affiliates, all of which they will be liable for. The firm must also pay a $10 million civil money penalty that has been issued for the CFPB, as well as a $6 million penalty to Florida, totaling  $27.7 million for their involvement in the scam. However, the majority of these penalties will be uncollectable. Last year both the CFPB and Florida froze the companies’ assets and the firm’s remaining assets, which are just over half a million dollars. CFPB Director Richard Cordray stated, “We are working to protect consumers from illegal predatory practices by holding bad actors accountable for their actions.”

The firm managed to lure clients in with deceptive marketing tools and false expectations for loan modifications and protection from foreclosure. Unsuspecting homeowners seeking to adjust their loans and keep their homes were charged an upfront fee of $6,000. A monthly payment of $495 was also collected from the homeowners. According to court documents, the firm violated federal rules by discouraging clients from communicating directly with their lenders or servicers, claiming they would handle all communications for the homeowners.

The CFPB explained, “Companies cannot legally accept payment for helping to obtain a mortgage modification for a consumer before the consumer has a modification agreement in place with their lender.” At this time, CFPB reports that the companies have been permanently disbanded and are no longer able to do business of any sort. The law firm’s associate has also relinquished his license to practice law in the state of Florida.

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.

Sources: http://www.americanbanker.com/news/law-regulation/cfpb-florida-win-case-over-alleged-foreclosure-relief-scam-1074596-1.html
http://www.housingwire.com/articles/34036-cfpb-secures-277-million-judgment-against-foreclosure-relief-scammers

A growing problem today is foreclosure rescue and mortgage modification scams. These scams can cost you thousands of dollars and even the loss of your home. The scams often hook unsuspecting victims with false guarantees to lower mortgage rates or “save” their home, for a fee. They falsely claim to have direct contact with your mortgage servicers and promise to work on your behalf, when in reality they only intend to take your money and run.

The following tips will help you to be better informed regarding legitimate foreclosure rescue and mortgage modification options.

• The only ones with discretion to grant a loan modification is your mortgage servicer. A third party cannot guarantee or pre-approve your Home Affordable Modification Program (HAMP) mortgage modification application.

• In most cases, charging advance fees for a mortgage modification is illegal. If anyone is asking to charge you in advance for mortgage modification services, beware.

• The likelihood that you will receive a mortgage modification is not improved or guaranteed because you have paid a third party to assist with your application.

• If a third party is boasting of continued success rates, offers money-back guarantees, or they claim to be experts in HAMP, this is a red flag.

• Check and confirm any affiliations or connections an individual or company may claim to have with HAMP or the U.S. government. Even if you see a seal or logo in their correspondence or online, check it out.

• Never sign over the deed for your property to any organization or individual unless you are dealing directly with your mortgage company in an effort to forgive your debt.

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.makinghomeaffordable.gov/learning-center/Pages/beware.aspx

“Faster Foreclosures,” also known as non-judicial foreclosures are causing serious issues for financially struggling homeowners.  Many lawmakers are arguing for faster foreclosures because the costs are cheaper and the cases are quickly pushed through the court system. Faster foreclosures are not only a negative thing for homeowners; they also take away the homeowner’s rights. While Florida currently requires foreclosures to go through the courts, officials are fighting to make faster foreclosures a mainstream option.

The superintendent of the Department of Financial Services, Benjamin Lawsky, spoke about the issue during a Mortgage Bankers Association conference in New York City. Lawsky called for the state legislature to begin utilizing measures that would limit the timeline for foreclosure proceedings. Changes would include reorganizing foreclosures on vacant or abandoned homes as well as certain commercial properties. More than a dozen states in the nation process judicial foreclosures that go through the court system, including Florida.

In 2015’s first quarter, the national average of homes in any stage of foreclosure was 2.2%, according to a recent report by the Mortgage Bankers Association. Florida’s rate of 4.82% was the nation’s third-highest percentage of home loans in the foreclosure process. For homeowners who are behind on their payments, the judicial process is less pressing for them because the courts are involved every step of the way, which takes far more time.

Officials complain that judges’ schedules, hearings, required paperwork and backlogged courts make the process unnecessarily lengthy. The president of the Mortgage Bankers Association, David Stevens, who lobbies on behalf of lenders said, “Everybody is prepared to protect the consumer, but you don’t want to put unusual obstructions in place for homes that should be foreclosed upon.” Also, longer foreclosure processes can lead to more expenses for mortgage servicers, which could affect surrounding property values if the home is deserted and falls to poor condition.

In Florida, the process can take as long as three years. These longer timelines offer more options to homeowners. Those facing foreclosure will have far more time to try to refinance their mortgage, negotiate an alternative or even reside in the home without payments until the foreclosure is completed. Faster foreclosures take these options away and make the situation that much more difficult for the struggling homeowner.

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.wsj.com/articles/new-york-regulator-seeks-faster-foreclosures-1432074791

Local homeowners are finding themselves in a “free” home because of the statue of limitations law surrounding foreclosures more than five years old.

A Maitland man owns a pool home with a tennis court. He hasn’t paid on his mortgage in over seven years and does not intend to pay out any more ever again. Owing over $140,000 for his loan, he says his situation is only right. “It was justice quite frankly,” the homeowner said. His initial lender was Federal Home Loan Mortgage who filed foreclosure on the man in 2008. Thereafter, the loan transferred over to Nationstar Mortgage.

“They sold my loan so many times no one knew who had the paperwork,” the Maitland homeowner stated. Cases have been dismissed based on the belief that banks have five years to file a foreclosure after the homeowner defaults and the lender requires the full balance to be paid out. It has been argued in these cases that the lender can’t foreclose again once this five year mark has passed.

Large banks and lenders alike are arguing against this, saying that they have far more time and that the five year “timer” resets itself each time a mortgage payment is missed by the homeowner. The Florida Supreme Court has been presented with the issue and they are scheduled to review the law in October.

Since 2007, Florida has had more than 3 million foreclosures filed, according to RealtyTrac. Some find it unfair for homeowners to get out of meeting their mortgage obligations, and then be rewarded with a free home. Still, others hold little compassion for the banks.

“I think it is what you would call poetic justice,” the homeowner added.

Although he still pays taxes and insurance for his home, it is far cheaper than his prior mortgage payments of $1,400 per month. Also, until the home is sold, the bank can keep a lien on his property.

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.wftv.com/news/news/local/9-investigates-people-turning-foreclosures-free-ho/nmDhN/