Foreclosures Archives - Page 29 of 57 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

‘Zombie’ homes a growing problem in Florida neighborhoods

Posted on October 10, 2014by Admin

A bank forecloses on a home, the residents pack up and leave and the city is left to clean up the mess. These abandoned homes in foreclosure limbo, referred to as zombie homes are haunting a number of Florida neighborhoods. These properties are often uninhabitable because they have fallen into such disrepair, and the owners are unwilling to fix them up because with the outstanding mortgage payments, the bank can still come back and foreclose on the property.

By hand-picking which foreclosures they complete and which they ignore, banks are strapping individual borrowers with a permanent, inescapable debt while creating slums in already struggling communities. These vacant homes often attract drug dealers and squatters and bring down the value of surrounding properties.

The financial crisis resulted in many homeowners walking away from their properties when they got their initial foreclosure notice, seeking to avoid being evicted, not realizing that the process could take years.

Zombie foreclosures have become more widespread in recent years throughout the country, but are especially prevalent in Florida, where as of June 2, 48,630 homes in some stage of foreclosure sat vacant, according to RealtyTrac. That accounts for a third of the 141,406 vacant foreclosed properties nationwide!

According to real estate experts, zombie foreclosures come in two forms:

1.) The unintentional “byproduct” of Florida’s judicial foreclosure process, which can take months and result in “properties sitting in limbo;”

2.) Intentional delay by lenders, who file a foreclosure case so they do not lose the option to do so when the statute of limitations runs out. However, these lenders do not move forward because completing the foreclosure would not be financially viable.

Zombie homes can haunt homeowners- and neighborhoods for years, having a negative impact on cities. When homeowners and banks walk away from a property, the city is left with the responsibility of the home.

The Justice Department has taken some responsibility. Bank of America and JPMorgan Chase & Co. each agreed to forgive loans when they decide not to pursue foreclosure and have helped cities pay to demolish the abandoned homes. The agreements, however, contain no specific monetary obligation and instead fall under broad consumer relief payments.

Florida cities like Jacksonville and St. Petersburg have borne the burden. Jacksonville demolished 113 homes that were vacant and unsafe in 2013. In 2014, the city bulldozed another 60 properties. It is estimated that St. Petersburg will demolish 100 houses this year. Officials have said the city simply does not have the resources to deal with all of the vacant homes.

Click here to read more on this story…
http://www.publicintegrity.org/2014/09/15/15519/zombie-homes-haunt-florida-neighborhoods

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.

Mortgage Relief Scams BUSTED!

Posted on October 1, 2014by Admin

State and federal law enforcement agencies have brought 41 enforcement actions against scammers who prey on homeowners struggling to make their mortgage payments. “Operation Mis-modification,” has targeted a number of mortgage relief scams and charged the perpetrators behind the schemes with deceptive marketing, making false promises and pocketing illegal fees.

So how do these scammers target their victims? Some scammers sift through public foreclosure notices looking for potential targets. There’s no shortage of these. According to one market analyst, almost 700,000 homes were in some stage of foreclosure in April. Others advertise on the Internet, television and even the side of the road with signs stating, “Stop Foreclosure NOW” or “Get a Loan Modification.”

Tactics used to scam struggling borrowers include:

• Pretending to be associated with a government agency or the homeowner’s mortgage lender.
• Guaranteeing loan modifications regardless of the circumstances.
• Claiming to be a non-profit whose purpose is to educate the public about keeping their homes.
• Convincing homeowners to surrender the title to their home with a promise that they can buy it back later.

The FTC has discovered two more sophisticated schemes involving “forensic loan audits” and “mass joinder lawsuits.” In a forensic loan audit, the scammer will examine your loan documents to determine whether the lender made any errors that can be used to stall a foreclosure. In a mass joinder lawsuit, scammers who often pose as attorneys convince homeowners that they should join a lawsuit with others in similar circumstances against their lender. In both the audit and lawsuit scheme, homeowners are required to pay upfront fees and get little or nothing in return.

Below are some tips from the FTC and BBB to avoid being the victim of a mortgage relief scam:

• NEVER pay an upfront fee to get help with a mortgage / loan modification. No matter what someone tells you, it is against the law for companies that provide mortgage relief services to charge you before they give you a written offer from your lender and you have accepted that offer.

• Do not send your mortgage payment to anyone but your lender. Companies that ask you to send your mortgage payments to them while they negotiate on your behalf almost always take the money and disappear. If your lender does not receive your mortgage payments, you could lose your home.

• Do not fall for official sounding names. Most of these organizations try to make themselves sound legitimate by choosing names like the “Federal Debt Commission” or “Federal Assistance Program.” That does not mean they are affiliated with the government.

• A forensic loan audit will not prevent foreclosure. There is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if these are conducted by a licensed auditor, mortgage professional or lawyer.

• There are no guarantees. Do not do business with a company that guarantees to get you a loan modification. The law requires that companies tell you that your lender may not agree to change your loan.

Foreclosures, Timothy Kingcade Posts

Florida’s “New” Foreclosure Initiative Favors Banks not Homeowners

Posted on September 15, 2014by Admin

In the past year, Florida judges have been working under explicit directions from the state Legislature and Supreme Court to get rid of old foreclosure cases and clear the court dockets- largely by awarding tens of thousands of homes to the banks.

The state’s so-called “foreclosure initiative” is set on clearing the court system of cases and cutting the time it takes banks to foreclose. This is a nightmare for many underwater homeowners struggling to hold onto their homes.

State legislative and judicial leaders have ignored the ramifications of foreclosing on thousands of families and turning these properties over to the banks. In an attempt to clear the backlog of foreclosures, the state has set up a parallel legal system in which judges hear only foreclosure cases — often more than 100 motions a day — in courtrooms set up solely for that purpose. In another twist, the rules will differ from those that guide civil law in other types of cases in Florida and across the country.

Homeowners and foreclosure defense attorneys are outraged, saying “the state’s entire court system is being compromised” and they are not getting a fair hearing in a legal system that is favoring the banks from start to finish. In statements from the bench and other public forums, judges have made it clear that speed is their top priority. The rights of homeowners come, at best, second.

The state Supreme Court set a target of disposing of 256,000 foreclosure cases each year for three years. That works out to about 700 cases per day. The courts have gone as far as to hire retired judges solely to hear foreclosures and case managers. These clerks and judges schedule hearings and trials even if both parties do not consent.

According to data collected by the state, one judge in Broward County closed 786 cases in a single day! Overall, Florida judges disposed of 193,922 foreclosure cases in the first nine months. Not surprisingly, the overwhelming majority of those judgments were against homeowners.

Click here to read more on this story.

Bankruptcy Law, Foreclosures

Is it better to file bankruptcy BEFORE or AFTER foreclosure?

Posted on September 9, 2014by Admin

If you plan to file bankruptcy and are also facing foreclosure, the timing of your bankruptcy can make all the difference- depending on whether you want to keep your home. When you file for bankruptcy, an automatic stay immediately goes into effect. This freezes all collection activities against you, including any collection attempts from your mortgage lender. Once the automatic stay goes into effect, creditors cannot take money from you or pursue any lawsuits against you. Even collection phone calls and letters violate the automatic stay.

If you file for bankruptcy before your home is sold at foreclosure, the automatic stay will prevent the foreclosure from moving forward. This will also allow you to stay in your home longer and add to the time it takes the lender to sell your home.

If you do not want to keep your home and your bankruptcy is complete before the foreclosure, this can give you peace of mind. You will not need to worry about any lingering deficiency balance once the foreclosure goes through. Bankruptcy will eliminate this. Even if you try and negotiate a loan modification with the bank and do not succeed, you can still walk away without owing anything.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, 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.

Foreclosures, Timothy Kingcade Posts

BOA’s $17 Billion Mortgage Settlement Explained

Posted on September 8, 2014by Admin

Bank of America has agreed to a legal settlement with the Department of Justice to avoid prosecution for hundreds of billions of dollars in bad mortgage loans, making it the largest corporate legal settlement with the government in U.S. history. The total “on-paper” cost of the deal is reportedly as high as $17 billion. But many are calling the deal deceptive. In reality, the settlement is unlikely to cost BOA anywhere near that amount. Much of the deal will be tax deductible and half of its cost is made up of actions on behalf of homeowners that are in the bank’s best interest- not in the form of cash refunds that will cost the bank money.

So what does this settlement mean for struggling borrowers and underwater homeowners? While the details are still being worked out, the deal includes roughly $9 billion in cash payouts and $7 to $8 billion in “consumer relief” actions such as mortgage write-downs and refinancing for struggling borrowers. These consumer relief provisions do not require the bank to spend money they would not already spend in the normal course of business operations. For BOA, helping people stay in their homes and keep making payments is better for the bank’s revenue than foreclosing on struggling homeowners.

The settlement requires BOA to relax loan terms, reduce principal amounts and destroy abandoned properties that are hurting property values. Even at face value, the reported settlement is minuscule compared to the harm caused by Bank of America companies. The on-paper cost of the deal is less than 7 percent of the value of the mortgage deals Bank of America and its subsidiaries Countrywide and Merrill Lynch made before the housing crisis that have since gone bad.

Foreclosures, Timothy Kingcade Posts

Miami Mortgage Fraud Scheme Costs FHA $50 Million

Posted on August 29, 2014by Admin

Greater County Mortgage Bankers owner Hector Hernandez was indicted along with seven of his employees for a $50 million mortgage fraud scheme. Wire fraud charges were filed against developers Armando Bravo and Aleida Fontao.

The indictment states that the defendants secured fraudulent mortgages through the Federal Housing Administration from 2006 through 2008. The loans included exaggerated income and financial statements. Hernandez, the owner of the mortgage company allegedly used false documents such as phony earning statements to qualify borrowers, who otherwise would not have qualified.

Hernandez was also accused of giving borrowers kickbacks after closing on condominiums. The majority of the Great County loans defaulted and went into foreclosure. The scheme cost the FHA over $50 million, as these loans were guaranteed.

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.

Foreclosures, Timothy Kingcade Posts

Miami Heat Star Dwayne Wade’s Suburban Home Facing Foreclosure

Posted on August 26, 2014by Admin

NBA star Dwayne Wade’s former suburban Chicago home is facing foreclosure. According to TMZ, the Miami Heat guard is worth approximately $100 million, and brings in roughly $30 million a year. So you are probably wondering, why the foreclosure? Wade lived in the 7,800 square foot home with his wife and children until 2007, when the couple divorced. Just last year Wade settled with his ex-wife for $5 million and relinquished ownership of the home.

His wife receives $25,000 a month in spousal support. After being awarded the house last year, Wade’s ex-wife stopped making payments on the mortgage and this month the bank filed a foreclosure notice for the $225,000 balance. Since Wade’s signature was on the original mortgage papers, the bank is asking him to pay up, but the NBA star’s attorney has stated that his client has no further payment obligations on the home.

The six bedroom, seven bathroom home is currently listed at $1.2 million. The South Holland home sits on a 3.2 acre lot, has a sports theater room, exercise room, a sauna, a pool and includes a two bedroom guest house. The listing also mentions that “some custom furniture may be for sale by the owner.”

Foreclosures, Timothy Kingcade Posts

Lawsuit aims to stop collection attempts on mortgage debt from old foreclosures

Posted on August 22, 2014by Admin

A lawsuit filed last week in federal court is hoping to block collection attempts on unpaid mortgage debt from foreclosures that took place years ago. A deadline change in the state’s law started a mass filing this year of deficiency judgment claims against defaulted borrowers, including at least 110 lawsuits in Palm Beach County since June 1.

The problem is that the claims violate the Fair Debt Collection Practices Act in cases where the suit is filed in Florida, but the borrower has since moved out of state. There is a class action lawsuit being sought in the Middle District of Florida on behalf of Massachusetts resident Richard Simpson, who lost a Jacksonville home to foreclosure in 2009.

Simpson was sued for a $26,651 deficiency in February, but many of the claims are for amounts greater than that. It is typically the difference between what the home is sold for at auction and the remaining mortgage debt.

The goal is to sue the out-of-state defendants who have just 20 days to respond, and then get a default judgment when they do not respond on time. Approximately 10,000 deficiency judgment claims have been filed in Florida.

Many homeowners are taken completely by surprise, unaware that the banks have a right to do this. Deficiency judgments used to be so rare that underwater homeowners simply took the chance and walked away, thinking the worst thing that could happen is that they lose their home.

A change in Florida law that went into effect July 1, 2013, reduced the timeline that banks and mortgage companies have to file for a deficiency judgment from five years to one year after a foreclosure is final, which is when the home is sold at auction.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Foreclosures hit Pre-Crisis Low

Posted on August 14, 2014by Admin

The number of home loans that entered foreclosure in the second quarter this year hit its lowest level since early 2006, just before the housing crisis, according to data released by the Mortgage Bankers Association. Housing experts attribute the low rate to an improving job market and higher home prices, another sign that the mortgage crisis is behind us- for now. At the mortgage crisis’ worst point, in the third quarter of 2009, servicers started foreclosures on 1.42% of home loans. Last quarter, they began foreclosures on only 0.4% of loans, the lowest rate since the second quarter of 2006.

Delinquency rates- those that have at least one late payment but are not yet in the process of foreclosure- decreased to 6.04% after adjusting for seasonality, reaching its lowest level since the end of 2007. However, banks still have a number of already foreclosed-upon homes to work through particularly those in “judicial states,” where foreclosures must be processed through the court and tend to take longer.

Florida, New York and New Jersey accounted for more than 40% of all loans in foreclosure in the second quarter. These three states will have a significant impact on national figures moving forward.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

Once Popular TV Star Facing Foreclosure

Posted on August 4, 2014by Admin

“The O.C.” star Mischa Barton is facing foreclosure on her Beverly Hills mansion. According to TMZ, Barton has been handed a default notice informing her that she has missed more than $100,000 in payments. She purchased the eight-bedroom, 11-bathroom mansion for $6.4 million in 2005, when “The O.C.” was at its height of popularity and took out a loan for $4.2 million. The show went off the air in 2007 and Barton has been trying to sell the property since 2010 for a reported $8.9 million. Her prior attempts to rent the home at a price of $35,000 a month were unsuccessful.