Foreclosures

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 In April, the FHA rescinded the MOE and updated it this past June.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

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/