Foreclosures Archives - Page 27 of 56

Number of reverse mortgage complaints show consumers confused by loan terms

Posted on February 13, 2015by Admin

The Consumer Financial Bureau released a report highlighting the most common consumer complaints about reverse mortgages. A reverse mortgage allows a borrower, 62 years or older, to access the equity they have built up in their homes and defer payment of the loan until they pass away, sell or move out. The report details the approximately 1,200 reverse mortgage complaints the CFPB received between December 2011 and December 2014.

The most frequent complaint involved older consumers and their families demonstrating confusion about the terms and requirements of reverse mortgage loans. Many complaints showed a disconnect between consumer expectations and the way a reverse mortgage actually works.

For example, many consumers are frustrated when they are unable to refinance their loans because there is insufficient remaining equity in their homes. The CFPB reports these complaints suggest that some homeowners may not understand that the loan proceeds as well as the accrued interest on the loan overtime will substantially decrease the amount of available equity. Another complaint was over struggles with foreclosure due to issues with property taxes and homeowners’ insurance. Even though reverse mortgages require no monthly payments, borrowers are still responsible for property taxes and homeowners’ insurance. The CFPB reports the most frequent complaint involved consumers trying to add additional borrowers to the loan in order to extend the term of the loan.

To ensure that potential reverse mortgage borrowers and their families are prepared for the unexpected, the CFPB has the following advice for borrowers:

Verify who is on the loan: If two borrowers took out a reverse mortgage, they should verify with the reverse mortgage company’s loan records to ensure accuracy.
Plan ahead for the non-borrowing spouse: For those who took out a HECM reverse mortgage in the name of only one spouse before Aug. 4, 2014, they should contact their loan servicer to find out if the non-borrowing spouse can qualify for a payment deferral. If the answer is no, they should make an immediate plan in the event the borrowing spouse passes away first. If the reverse mortgage was taken out after Aug. 4, 2014, new changes to the HECM program allow the non-borrowing spouse to remain in the home, if certain conditions are met.
Plan ahead for other family members. Consumers should make sure that any children or family members living in the home know what to expect when the reverse mortgage comes due. When a borrower dies, heirs can sell the home, repay the loan balance or pay 95 percent of the property’s assessed value. If those members want to keep the home, the borrower should contact their reverse mortgage company to have them explain all of their options in greater detail.

Click here to read more on this story.

http://consumerist.com/2015/02/09/reverse-mortgage-complaints-show-consumers-confused-by-loan-terms/

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.

U.S. Service Members Receive $123 Million in Foreclosure Relief

Posted on February 11, 2015by Admin

U.S. armed service members will receive $123.4 million as a first round of payments, in conjunction with the $25 billion nationwide mortgage settlement reached in February 2012. The U.S. Justice Department announced that 666 service members and their co-borrowers will receive $88 million from JPMorgan Chase & Co, Wells Fargo & Co, Citigroup Inc and Ally Financial Inc, under a federal law that protects service members from foreclosures.

Lenders have been accused of violating the Servicemembers Civil Relief Act that prohibits non-judicial foreclosures against service members who are on or have recently left active duty, and took out their mortgages before their service started. The foreclosures at issue took place between January 1, 2006 and April 4, 2012.

Acting Associate Attorney General Stuart Delery had this to say, “Service members should never have to worry about losing their home to an illegal foreclosure while they are serving our country.”

Click here to read more on this story.
http://www.reuters.com/article/2015/02/09/us-foreclosures-military-idUSKBN0LD2KQ20150209

Foreclosures, Timothy Kingcade Posts

HARP: The Government Refinance Program the Banks Don’t want you to know about

Posted on February 10, 2015by Admin

Despite being launched in 2009, less than 0.5% of people have taken advantage of the Home Affordable Refinance Program (HARP). Few people know about it and even less know how to use it. HARP is designed to help homeowners obtain a more affordable, stable mortgage. It provides a bailout to help millions of homeowners save a significant amount of money by lowering their mortgage payments. Those who have taken advantage of the program have reduced their mortgage payments by as much as $3,000 a year.

The program expires in 2015, but there’s still time to get signed up. If you qualify and refinance through HARP, you may be able to take advantage of a number of significant benefits, including:

• Eliminating up to 15 years of mortgage payments and interest;

• Changing to a lower monthly payment;

• Refinancing at historically low rates.

Banks do not want you to benefit from the program, because it allows homeowners to switch lenders, taking millions out of their pockets and putting it back into the pockets of everyday people. If you feel like your mortgage interest rate is too high with your current lender, it probably is. HARP can help you switch to a new lender, one prepared to offer you today’s low rates, and you could save big. HARP is a government program and is totally free, so you have nothing to lose.

Click here to see if you qualify.

Credit, Foreclosures, Timothy Kingcade Posts

Mortgage Advice from Dave Ramsey: Is a 30-year mortgage a bad option?

Posted on February 9, 2015by Admin

According to financial guru, Dave Ramsey, you are better off with a 15-year mortgage. His reasoning… “The 30-year mortgage robs your future. It enables borrowers to buy more house than they can afford by spreading the payments out over a longer term. In addition, those homeowners paid tens- even hundreds of thousands of dollars more in interest.”

Dave recommends getting a 15-year mortgage with “at least a 10% down payment and monthly payments that are no more than 25% of your take-home pay. This is a great way to ensure you build wealth quickly and avoid paying a mortgage into your retirement. Paying off your mortgage completely will free up income later for other investments and allow you to live more comfortably as you age.

If you have already committed to a 30-year mortgage loan, there’s still time for you to save and be mortgage free by retirement. Some homeowners have been able to switch to a 15-year mortgage with extremely low interest rates. However, if you cannot afford the 15-year repayment plan comfortably, do not risk it.

Instead, look into the Home Affordable Refinance Plan (HARP), a government-backed program that offers low mortgage rates and was designed to reduce mortgage payments and put money back in your pocket. If you owe less than $650,000 on your mortgage, the chances of qualifying for this program can be high. Homeowners who have refinanced have saved an average of $250 per month.

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http://www.bills.com/dave-ramseys-advice-on-mortgage/?utm_source=taboola&utm_adgroup=agg_desktoptablet&utm_term=coinhead_30flatout_agg&utm_medium=businessweek

Related Resources:

http://www.bills.com/dave-ramseys-advice-on-mortgage/?utm_source=taboola&utm_adgroup=agg_desktoptablet&utm_term=coinhead_30flatout_agg&utm_medium=businessweek

Foreclosures, Timothy Kingcade Posts

Foreclosures decreased in Broward, Palm Beach Counties last year

Posted on January 30, 2015by Admin

Foreclosure cases dropped sharply in South Florida last year, another sign the housing market is recovering. Broward County had 6,287 filings in 2014, a 42% decline from 2013 and Palm Beach County had 3,920 filings, down 55 percent from the previous year, according to RealtyTrac.

Some real estate experts predict a new wave of cases this year, but it will not be enough to derail the housing market recovery- and it may even be a good thing because it will put more homes on the market for avid buyers. Others argue that these foreclosed homes typically are not in good condition because of poor maintenance, and a fewer number of foreclosures and a steady increase in property values will reduce the number of “desperate sellers.” A decline in these desperate sellers could mean we see better quality homes hitting the market.

Although total filings fell 24 percent in Florida last year, the state still ranked No. 1 in foreclosures nationwide, with 2.3 percent of all Florida housing units receiving a notice in 2014.

Click here to read more on this story.
http://www.sun-sentinel.com/business/realestate/fl-realtytrac-foreclosures-20150115-story.html

Foreclosures, Timothy Kingcade Posts

How to Bounce Back after Foreclosure

Posted on January 27, 2015by Admin

Going through a foreclosure can be a traumatic experience, but it doesn’t mean you can never own a home again. If you have recently been through a foreclosure, here are some ways you can bounce back and put yourself back on the path to homeownership.

• Clean up your credit. The first step on the road to recovery is rebuilding your credit score. According to a recent study by FICO, the higher your credit score before the foreclosure, the longer it takes to fully recover. For example, a homeowner with a credit score of 680 would take around three years to get back to their pre-foreclosure credit score. But a homeowner who started out with a score of 780 would require seven years after a foreclosure to return to their pre-foreclosure credit score. The best way to repair your credit is to keep using credit- RESPONSIBLY. To avoid missing a payment, set up automated payments. The biggest mistake people make is cutting up their credit cards or closing out lines of credit. This leaves you with a large gap in your credit history. Lenders want to see that you are using credit regularly in a responsible way.

• Putting in the time. You will need to find a lender willing to offer you a mortgage. Some government backed loans can help speed up the process. For many people, an FHA loan will be the quickest path back to homeownership. After a foreclosure, the government requires a three-year waiting period before you can qualify for another FHA-backed loan. Fannie Mae and Freddie Mac loans have an even longer wait time. Those lenders both require a seven year period before you will be considered for a new loan. There are exceptions. For example, if you can prove that the foreclosure was the result of an unexpected job loss or a death in the family.

• Tax Obligation. It comes as a shock to many that the federal government considers a forgiven debt as a form of income, which means you may have to pay income tax on a foreclosure. Congress passed a law in 2007 that exempted up to $2 million in forgiven debt in most cases of foreclosures. The law expired at the end of last year, but if your foreclosure was finalized before then, you will likely be in the clear. Even if you do not qualify under this act, there are other exceptions. For instance, in cases of bankruptcy the government will not pursue you.

Click here to read more on this story: http://www.foxnews.com/leisure/2015/01/23/how-to-bounce-back-after-foreclosure/

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Former NFL Player Receives Prison Sentence for Mortgage Fraud Scheme

Posted on January 26, 2015by Admin

Former Tampa Bay Buccaneers player, Jeffrey Charles Leroy Taylor, was sentenced to three years in prison for his part in a $7 million loan modification scheme that affected thousands of homeowners. In addition to his prison term, Taylor was ordered to pay more than $350,000 in restitution to the victims of the fraud.

Taylor, who also played football for the University of Miami and lives in Fort Lauderdale, pled guilty to the charges in late 2014. The scheme was reportedly organized by the operator of FHA All Day.com, Jason Vitulano, Housing Assistance Law Center and Safety Financial Corp. The defendants allegedly defrauded more than 2,000 struggling homeowners out of millions of dollars through fraudulent loan modifications in 2008 and 2009.

Taylor reportedly acted as the team manager of four telemarketers who made thousands of phone calls to homeowners offering to reduce their mortgage payments or stop the foreclosure process for a fee paid to FHA All Day.com.

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

Housing Outlook 2015: Predictions from the Experts

Posted on January 5, 2015by Admin

It’s been an interesting year for the nation’s housing market. The ‘Polar Vortex’ was blamed for the decrease in home sales in early 2014. Price gains for previously owned homes slowed significantly. However, builder confidence for newly constructed, single-family homes has increased for six straight months. What does it all mean? Experts attribute these confusing signals to a shift out of rapid recovery and into a more stable phase that economists are calling the new normal.

Below are 10 predictions from the experts for the housing market in 2015:

1. Prices will rise more slowly. Housing price gains slowed dramatically in 2014 and are expected to continue in 2015. Easing housing inventory levels and the exit of investors from the market are helping put the brakes on home price escalation. Nationally, prices are near their spring 2005 levels.

2. Affordability will worsen. Unfortunately, for those looking to buy this year, slowing housing prices does not mean that home ownership will be more affordable. Housing experts predict homes are just 3% undervalued now, leaving little room for them to rise without becoming overvalued.

3. The buying frenzy will fade. With more investors leaving the market, the home buying process should be a bit easier in 2015, thanks to a lessened inventory and credit requirements. With rising prices, fewer bargains are on the market, making housing less attractive to investors.

4. Mortgage interest rates will rise. The Mortgage Bankers’ Association predicts that rates will rise to 5% by the end of 2015. For most of 2014 interest rates were flat or declining. A great reminder that economists can make predictions, but not to bet the farm on them.

5. Millennials overtake Gen X as homebuyers. Zillow predicts that by the end of 2015, Millennials (those under the age of 35) will overtake Gen X (35-50 years old) to become the largest group of homebuyers in the U.S.

6. Rent increase will outpace home value growth. Housing experts forecast that rents will rise 3.5% in 2015, outpacing the predicted 2.5% for annual home price gains. This, in turn, may push some Millennials to become buyers. The allure of fixed mortgage payments and a stable housing market is expected to entice more renters to become homebuyers.

7. Multi-family construction will dominate. Trulia’s research indicates that more people will try to sell their homes in 2015 and Realtor.com predicts that existing, or previously owned, home sales will grow 8% this year. The entry of these previously owned homes into the market could suppress the demand for more expensive newly constructed homes. The vacancy rate for single-family homes is still near its recession high, which is likely to further depress construction of new single-family homes. So builders will continue to meet the demand for apartments–and multifamily housing could have another strong year.

8. Builders shift to cheaper homes. In recent years, builders have chosen to build fewer, more expensive homes instead of cheaper homes in larger quantities. The trend—driven in part by a limited supply of land during the recovery–has left a price gap between more expensive new homes and less expensive existing homes. Experts agree that new home sales will top the 500,000 mark in 2015.

9. Foreclosures will match pre-recession levels. From January through November 2014, there were 1,256,070 foreclosure filings in the U.S., according to RealtyTrac, down about 17.2% from the same period the previous year, when there were 1,516,332 filings. In 2015, expect foreclosures to fall to pre-crisis levels.

10. The housing market will be driven by fundamentals. In 2015, the housing market is expected to be driven by underlying economic fundamentals (i.e. – job growth, incomes, and household formation). Mortgage interest rates and price recovery have driven the housing market for years, but now experts predict these factors will not be nearly as important as local economics in 2015.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

A Win for Consumers! Elderly Couple Wins $1 Million in BOA Lawsuit over Harassing Debt Collection Calls

Posted on December 18, 2014by Admin

Nelson and Joyce Coniglio were called repeatedly and endured years of harassment after they fell behind on their mortgage payments in 2009. According to court documents, for more than four years the couple received approximately 700 collection calls from Bank of America’s automated robo calling system.

The automated system also dialed each number that the couple had available- home phone and cell phones, leaving messages on each one. The collection calls would come at all times of the day and night, leaving the 69-year-old couple completely overwhelmed and feeling helpless.

When Bank of America was not bombarding the couple with relentless and harassing phone calls, they were mailing them letters threatening foreclosure. The Coniglios say they even sent letters to the bank asking them to cease all phone calls, but the calls continued.

Fed up, the couple decided to take action, using the Fair Debt Collection Practices Act and the Telephone Consumer Protection Act, which outlines the manner in which these collection companies, agencies, and banks collect on money owed to them.

The judge awarded the elderly couple exactly $1,051,000 in monies due, including court costs and other attorney fees related to the suit.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. 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.

Foreclosures, Timothy Kingcade Posts

Music Producer Jermaine Dupri Facing Foreclosure

Posted on December 12, 2014by Admin

Jermaine Dupri who has produced hits for artists including Usher and Mariah Carey is reportedly losing his multimillion dollar Atlanta mansion. Foreclosure documents reveal the songwriter / rapper failed to make monthly payments on the 19-room, 9,441-square-foot home. He reportedly owes $2.5 million.

Public records show the property is valued at nearly $3.7 million. This is not the first time the music producer has faced financial troubles. His mansion was up for foreclosure and set to be auctioned in 2011 and 2012. Both of those sales were canceled. Dupri has lived in the home for 10 years.

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