Foreclosures

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/ 

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

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.

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

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.

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