Foreclosures Archives - Page 24 of 56

Some Homeowners Keep Their Homes, 5 Years after Foreclosure

Posted on May 20, 2015by Admin

Since Florida’s courts were bombarded with foreclosure cases over five years ago, some homeowners who were sued have managed to remain in their homes without paying mortgages because of a law called the statute of limitations.

Certain Florida courts have declared that lenders will not be able to bring forth foreclosures, according to a set criterion. If the lender has already filed for foreclosure on a home, demanded payment of monies borrowed, lost the case, then failed to file another action within five years of the original suit, they will no longer be able to foreclose or evict the homeowner from their residence. However, other courts throughout the state disagree with this.

On October 6, the Florida Supreme Court will hear oral arguments regarding this matter and may issue an order to finally resolve this conflict. The outcomes are expected to vary per foreclosure case but homeowners are cautioned that in most cases, if they do not pay, they will not keep their homes. According to NBC 6 Investigators, many people are living in their homes without paying mortgage and it looks like they might be able to continue doing this.

One Dadeland man was only 19 years old when he received a loan of nearly $190,000 for an apartment in 2007. Shortly after the purchase, he was in a serious accident and was unable to use his leg for eight months. By then, the computer technician position he’d had was gone. Unable to make payments, his lender filed for foreclosure.

In February 2011, the case was thrown out when the attorney for the man’s lender, Chase Home Finance, failed to appear. Nearly two years later, the resident received a new foreclosure lawsuit notice. After seeking an attorney, the case was finally dismissed this past October, due to the statute of limitations law.

“We learned that there’s an actual statute of limitations on this kind of thing, five years from the initial filing,” the Dadeland homeowner said. He also said that he felt as though he did nothing wrong in this case. “It seems kind of un-American, honestly, if they can keep coming at me for something they’ve already lost on twice.”

A Miami woman bought a home near Coconut Grove in 2001. Shortly after the 2008 recession, she also had trouble making her mortgage payments. “There was a lot of back and forth with the bank,” the woman explained. In 2009 a foreclosure action was filed against her by her lender, Nationstar Mortgage. She stopped making payments, saving funds while she tried for a modification.

After a botched contract and miscommunications with the lender, the Miami woman sought legal help. The case was finally dismissed last June when Nationstar failed to appear before the judge. Since then, the lender has requested to reinstate the foreclosure, before the five year mark. She is appealing this action and if she is successful, she too might be living in her home without mortgage payments and fear of foreclosure.

While some homeowners prevail with the Supreme Court, it is still likely that they will need to face outstanding liens and claims by the banks. Some recommend that homeowners should not stop making payments, solely based on the hopes that the statute of limitations will expire. Now that the number of foreclosure cases has fallen to a manageable amount, it is likely that the banks that truly have a right to the property will be prepared for court and present adequate evidence to prove their cases.

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.nbcmiami.com/news/local/Five-Years-After-Foreclosure-Some-Keep-Homes-303817841.html

Florida’s Foreclosure Courts’ Funds are Being Cut Off

Posted on May 19, 2015by Admin

Over the past two years, Florida’s foreclosure courts have been receiving extra funds in order to expedite cases, but this assistance is about to come to a stop.

To add judicial manpower to the bench, over $21 million was budgeted in 2013. This is set to expire as of June 31 this year.

Homeowners will get the benefit of having a single judge dedicated to their case instead of multiple judges. Lawyers anticipate varying levels of confusion as cases are transferred to different divisions.

Palm Beach County Chief Judge Jeffrey Colbath said, “The legislature gave us enough money to get to the five-yard line, but it would have been nice to get across the goal line.”

Florida has gained control of their foreclosure system’s backlog, which was once flooded. Since 2013, Florida has seen a 66% statewide reduction in foreclosures with just 109,706 pending foreclosures statewide in January.

Curiosity as to how it was done depends upon who you ask. Some believe that judges rushed through many cases with minimal consideration of their merits. Many judges differ, saying that getting the case right was more important than how quickly the case was closed.

At this time Florida foreclosure cases are yet to return to how they were before the recession, but it is a work in progress.

Source: http://postnow.blog.palmbeachpost.com/2015/05/18/cash-flow-to-floridas-foreclosure-courts-is-being-cut-off/

Foreclosures, Timothy Kingcade Posts

Lowest Levels since 2007 for 1st Quarter 2015 Foreclosures and Mortgage Delinquencies

Posted on May 15, 2015by Admin

In the first quarter of 2015, the percentage of delinquencies and loans in foreclosures has dropped to their lowest since the last quarter of 2007. According to the National Delinquency Survey of the Mortgage Bankers Association (MBA), housing loan delinquency rates were at 5.54% on a seasonally adjusted basis for residential houses. Also, 2.22% of mortgage loans were in foreclosure.

Joel Kan, Associate Vice-President of Industry Surveys and Forecasting for the MBA, stated, “The foreclosure inventory rate has decreased in the last twelve quarters, and now is at the lowest level since the fourth quarter of 2007. With a declining 90+ day delinquency rate and the improving credit quality of new loans, we expect that the foreclosure inventory rate will continue to decline in coming quarters.”

The survey also revealed that legacy loans accounted for the highest percentage of problem mortgages. Reviewing the total number of problem loans, 73% of mortgage loans originated in 2007 or earlier. According to Mortgage Bankers Association’s records, applications for mortgage loans also dropped by 4.6% in the last week of April, 2015.

As of March 2015, foreclosure activity has spiked. Realty Trac’s records show that the total number of foreclosures rose above 120,000 in March 2015, following a decrease in January and February. March’s average foreclosure rate in the United States was one foreclosure out of every 1,082 houses. Florida held the highest amount of foreclosure activity with one foreclosure out of every 446 houses.

Source: http://usfinancepost.com/foreclosures-and-mortgage-delinquencies-fall-to-the-lowest-levels-since-2007-in-first-quarter-of-2015-25063.html

Credit, Foreclosures, Timothy Kingcade Posts

FTC Puts a Stop to Foreclosure Rescue Scam

Posted on May 5, 2015by Admin

Homeowners facing foreclosure across the nation were fooled into paying money out, all while getting nothing back in a recent Foreclosure Scam. After winning a court order, the Federal Trade Commission stepped in and shut down the entire operation, calling it a “massive fraud.”

The foreclosure rescue group was known as both HOPE Services and HAMP Services, targeting financially distressed homeowners. Jessica Rich, Director of the FTC’s Bureau of Consumer Protection defined the scheme as “shameful mortgage frauds.”

“These defendants stole mortgage payments from struggling homeowners, and they pretended to be a nonprofit working with the government,” Ms. Rich further stated. Nearly $2 million was lost by homeowners, according to the FTC lawsuit. In certain cases, victims paid the equivalent to several mortgage payments to the false mortgage relief enterprise.

Homeowners were lured in with a letter sent to them, explaining how they might qualify for help from the “New 2014 Home Affordable Modification Program” (HAMP 2). The letter even displayed what appeared to be an official government seal. FTC described HAMP 2 as “an aggressive update to Obama’s original modification program,” stating that the banks had received incentive from the government to lower interest rates. The operation then collected financial information from the victims, boasting about their high success rates for getting loan terms modified, according to the FTC complaint.

FTC also said that they advised victims that their application would be submitted to the “Making Home Affordable” (MHA) program, Neighborhood Assistance Corporation of America, and the U.S. Department of Housing & Urban Development. An actual MHA application was used in the operation, but it failed to include the warning page, addressing foreclosure rescue scams.

Following the application process, victims were advised they had been approved for a lower interest rate with lower payments. Safety from foreclosure was promised by the alleged Advocacy Department, after three “trial payments” were made as well as other possible fees. Victims were even advised not to speak to their lender or lawyer.

The monies received were never sent to the lenders and the modification never took place. As a result, people were falling further behind on their mortgage, incurring additional penalties and interest. According to the FTC, some even lost their homes.

Several federal laws were violated by the defendants, including the FTC Act, FTC’s Telemarketing Sales Rule, and FTC’s Mortgage Assistance Relief Services Rule. Listed defendants include Chad Caldaronello (aka Chad Johnson and Chad Carlson); C.C. Enterprises, doing business as HOPE Services, Justin Moreira (aka Justin Smith, Justin King, and Justin Mason); Derek Nelson (aka Dereck Wilson); D.N. Marketing doing business as HAMP Services; and Brian Pacios (aka Brian Kelly and Brian Berry).

Source(s): http://www.cbsnews.com/news/foreclosure-rescue-sham-shut-down-by-ftc/ and
http://consumerist.com/2015/04/30/ftc-halts-mortgage-relief-operation-targeting-consumers-in-foreclosure/

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Comparing Rates when Refinancing Could Save You $24k

Posted on April 29, 2015by Admin

If you are considering refinancing your mortgage, you would be cheating yourself if you did not shop the mortgage lenders, first. If you were car shopping, would you visit only one dealer? If purchasing an airline ticket, would you make your selection from just one airline?

A new study by LendingTree revealed that homeowners who shopped around saved significant amounts of money. On average, those who compared at least two different mortgage lenders saved up to $11,000. Those who compared three lenders saved up to $16,000 over the life of the loan. Those who compared five different mortgage lenders had the potential to save up to $24,000 because of the difference in interest rates.

The study also revealed that there are available interest rates as low as 2.63 percent. Rates have recently reached historically low numbers, but they are steadily climbing. Now is the perfect time to refinance and maximize your savings.

Click here to read more on how you can save thousands when refinancing.

Credit, Florida Bar, Foreclosures, Timothy Kingcade Posts

Palm Beach Judge Withdraws Foreclosure “Speed Up” Rule

Posted on April 24, 2015by Admin

Chief Palm Beach Circuit Judge Jeffrey Colbath withdrew his latest proposed rule aimed at speeding up foreclosure cases. This rule came after the Florida Supreme Court local rules advisory committee rejected the 2014 administrative order intended to sweep through the backlog of foreclosure cases. The rule is based on the idea that a docket of more than 20,000 foreclosure cases created a crisis and would deplete judicial resources.

If Judge Colbath’s rule had gone into effect, lenders and borrowers would have 60 days after motions are filed to respond. After that, judges would be allowed to make decisions based on the filings alone. Judges would have also had the discretion to waive the requirement where attorneys must make two phone calls to attempt to resolve issues. The proposed rule would require them to “make reasonable efforts to speak to one another.”

Judge Colbath’s withdrawal came just one day before Circuit Judge Richard Oftedal issued a standing order with the intent to accomplish the same thing.

Click here to read more on this story.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

30-Year Mortgage Interest Rates Rise to 3.67 Percent

Posted on April 21, 2015by Admin

After months of historically low interest rates, Freddie Mac released that the average 30-year mortgage rates rose slightly last week to 3.67 percent, up from 3.66 percent. The average 15-year mortgage rate rose from 2.93 percent to 2.94 percent. This time last year, the average 30-year mortgage rate was 4.27 percent and the 15-year rate was 3.33 percent.

The record low rate was in November and December of 2012, when the average 30-year rate reached 3.35 percent and the 15-year rate dropped to 2.66 percent. Rates remained low through the first quarter even though the Federal Reserve ended its monthly bond purchases last October, designed to maintain long-term rates. The Federal Reserve recently released that short-term rates will not rise any time soon after more than six years at zero.

Recent hiring gains have failed to create a stronger housing market. Home construction is down 2.5 percent from March 2014, according to the Commerce Department. Although the economy has experienced steady job growth, low mortgage rates and cheaper gas, the real estate market has yet to experience a significant boost.

Click here to read more on this story.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

FTC Uncovers another Mortgage Relief Scam

Posted on April 16, 2015by Admin

According to the Federal Trade Commission, the company “Wealth Education” deceptively promised mortgage relief services to financially distressed homeowners. The company charged hefty upfront fees and advised homeowners to take steps that ultimately led them into foreclosure.

The Los Angeles-based company has been one of many scammers that used the housing market crash of 2008 to take advantage of struggling homeowners. The company allegedly used a variety of names and sold phony services that promised to lower homeowners’ mortgage payments or refund their money. According to the FTC, the company never made good on its promise. The company charged rates as high as $5,000 and never issued a refund when it failed to provide homeowners with lower mortgage payments.

It is illegal for companies to charge upfront fees for the promise of a mortgage modification. Companies can only charge fees if you have an acceptable written offer from the lender.

Wealth Education was also advising homeowners to stop communication with their lenders. This would delay victims from figuring out the scam and cause them to stop making payments, which in turn resulted in their homes going into foreclosure.

Click here to read more on this latest mortgage relief scam.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Stricter Requirements for Reverse Mortgages Coming Soon

Posted on April 15, 2015by Admin

Beginning April 27th, 2015, the government is imposing stricter requirements when it comes to reverse mortgages. Reverse mortgages are available to seniors 62 years of age and older whose homes have equity they want to convert into cash. There is no repayment required until the borrower sells the house, moves out or dies. Loan recipients are responsible for paying property taxes, hazard insurance premiums and keeping the home in reasonable condition.

For the past 30 years, The Federal Housing Administration has had lenient standards for reverse mortgages. If a homeowner qualified with their age and equity, they were pretty much guaranteed a loan. The revised application process will be similar to a new mortgage application.

During the recession, many reverse mortgage holders failed to pay the required property taxes and hazard insurance premiums. In addition, the real estate market tanked, creating huge losses on defaulted and foreclosed properties. The FHA’s losses were so significant that the Treasury Department had to provide the Administration with a $1.7 billion bailout in 2013.

As a result, after April 27th, 2015, applicants will be required to demonstrate both the “willingness” and “capacity” to meet their financial obligations before obtaining a reverse mortgage. Lenders will pull borrowers’ credit reports and credit scores, just as they do for home loan mortgages.

Homeowners will have to prove that they have paid their real estate taxes and homeowner association fees on time for the past 24 months. They will also have to show proof of employment, income and other financial assets.

Click here to read more on the upcoming changes to reverse mortgages.

Credit, Foreclosures, Timothy Kingcade Posts

Home Buyers Obtain Mortgages After Foreclosure

Posted on April 14, 2015by Admin

Nearly five million American families lost their homes to foreclosure between 2007 and 2014. Foreclosures can have a negative impact on your credit score, but that doesn’t disqualify you from purchasing a home, again. Events such as foreclosure can stay on your credit report for up to seven years, but if you stay financially responsible after foreclosure, you can obtain another mortgage in seven years or less.

Homeowners who lost their homes in the early years of the housing crisis are starting to see the black marks erased from their credit reports, improving their chances of owning a home. Fair Isaac Corp., the developer of FICO credit scores estimated there were 910,000 homeowners who had foreclosure proceedings filed against them, between October 2007 and October 2008. Of those consumers, approximately 264,400 had the foreclosure erased from their credit reports by October 2014.

Some of the larger mortgage lenders, such as Bank of America Corp. and J.P. Morgan Chase & Co., are still hesitant to lend to borrowers who have a foreclosure on their credit report. Many of the large lenders were hit hardest with mortgage-related penalties and have since implemented tougher credit requirements on borrowers.

Click here to read more on purchasing a home after foreclosure.