Foreclosures Archives - Page 35 of 57 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

U.S. Foreclosure Inventory Down 33 Percent from a Year Ago

Posted on October 9, 2013by Admin

According to a report released this week from CoreLogic, there were 48,000 completed foreclosures in the U.S. in August of 2013, down from 72,000 in August 2012, a year-over-year decrease of 33 percent. As exhibited by the numbers, foreclosure inventory continues to improve. Completed foreclosures are an indication of the total number of homes actually lost to foreclosure.

Overall residential shadow inventory, as of July 2013, was 1.9 million homes, accounting for a value of $293 billion and representing a supply of 3.7 months. This was down 22 percent from a year ago, when it was at 2.4 million and down 38 percent from its peak in 2010, when it reached 3 million homes, according to CoreLogic.

This past year, the value of the U.S. shadow inventory dropped by $87 billion- a sign of increased normalcy in the housing market. Highlights from the report include:

• The five states with the highest number of completed foreclosures for the 12 months ending in August 2013 were: Florida (111,000), Michigan (60,000), California (58,000), Texas (43,000) and Georgia (40,000).

• The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: Florida (7.9 percent), New Jersey (6.2 percent), New York (4.9 percent), Maine (4.0 percent) and Connecticut (3.9 percent).

Shadow inventory highlights include:

• As of July, shadow inventory was under 2 million properties, representing 3.7 months’ supply or 85 percent of the 2.2 million properties that were seriously delinquent, in foreclosure or REO.

• Of the fewer than 2 million properties in the shadow inventory, 874,000 properties were seriously delinquent (1.8 months’ supply), 661,000 were in some stage of foreclosure (1.3 months’ supply) and 318,000 were already in REO (0.6 months’ supply).

• The value of shadow inventory was $293 billion as of July 2013, down from $380 billion in July 2012.

Click here to read more on U.S. foreclosure inventory being down 33 percent from a year ago.

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.

“Vampire” Foreclosures Damaging the Housing Market

Posted on October 8, 2013by Admin

With Halloween upon us, a blog posting on “vampire” foreclosures seemed appropriate. RealtyTrac has coined the term phrase in a new report to describe a growing number of homes across the U.S. that have been seized by a bank, but are still lived in by the original owners. An estimated 47 percent of bank-owned homes across the nation are still occupied by the previous owner. In some cities such as Miami, Los Angeles, Houston and Chicago, up to 65 percent of bank-owned homes are considered vampire foreclosures.

These vampire foreclosures along with the 20 percent of foreclosures known as “zombies,” where a homeowner has abandoned the property during the foreclosure process will eventually be put on the market. According to Vice President of RealtyTrac, Daren Blomquist, “this distressed inventory is artificially being held back so that in the short-term, it is helping boost the home prices and the housing market recovery in general. But the red flag is that eventually these homes are going to have to hit the market.”

At some point, banks will want to sell these properties, particularly as home prices increase. Combining the vampires, which number 250,000 nationwide, with the zombies, which number about 150,000, you have about 400,000 homes hitting the market. That’s about 10 percent of the current volume of home sales.

This will not only cause problems for the housing sector, but also the families living in them. Oftentimes, the former homeowners are still in the homes because the bank has given them 90 days to leave. They may also be in the home as they fight the foreclosure, because they believe they were improperly foreclosed upon.

The banks may also simply be allowing the homeowner to stay in an attempt to avoid the cost of maintaining the property. Blomquist predicts that as home prices rise and banks become more stable, banks will be more motivated to deal with these homes and proceed with evictions.

Click here to read more on “vampire” foreclosures damaging the housing market.

Foreclosures, Timothy Kingcade Posts

How the Government Shutdown Could Hurt Housing Market Recovery

Posted on October 7, 2013by Admin

The improvement in the housing market has been a driving factor for economic recovery. However, the recent government shutdown could impact this. Existing home sales increased 1.7% to an annual rate of 5.48 million units in August, the highest level since February 2007, according to the National Association of Realtors.

The housing market’s path to recovery has not been an easy one. It seems before the housing bubble burst, anyone with a pulse could qualify for a mortgage loan. One of the biggest problems the housing market has faced is extremely stringent lending requirements, which are expected to be compounded by the current government shutdown.
Banks remain risk adverse to issuing new loans in the wake of a financial crisis. In a tight credit market, potential buyers are expected to have a high credit score and put down at least 20% down payment.

To show proof of income, sellers are often asked to provide IRS Form 4506, but the majority of the Internal Revenue Service has been dark since Tuesday after lawmakers failed to reach an agreement on funding the government. There is also a strict IRS loan verification process. If buyers do not meet specific requirements, most mortgage loans cannot be authorized. David Stevens, president and CEO of the Mortgage Bankers Association and a former FHA commissioner, said if the shutdown extends beyond Monday that is when the delays in the mortgage process will really begin. Another hurdle, Stevens points out is that many lenders have to go through the FHA to get a mortgage approved and are unable to verify Social Security numbers because that system is also down- another obstacle for buyers trying to secure a loan.

Click here to read more on the recent government shutdown’s effect on the housing market.

Foreclosures, Timothy Kingcade Posts

Westin Fort Lauderdale Hotel in Foreclosure

Posted on October 3, 2013by Admin

The Westin Hotel in Fort Lauderdale has been hit with a foreclosure lawsuit, as it struggles to keep up with new hotels closer to the beach. U.S. Bank filed a foreclosure lawsuit on September 23 against PFL VII LLC, the owner of the 293-room hotel at 400 Corporate Drive. The hotel was built in 1986 with 141,391 square feet, including 22,000 square feet of event space. PFL bought it for $40.5 million in 2007 with a $42 million mortgage.

According to Trepp LLC, the mortgage has $41.3 million outstanding. The payments were current as of early September, but the loan was placed into special servicing for imminent default several months ago. The borrower requested payment relief because of negative cash flows. For the 12 months ended March 31, the Weston Fort Lauderdale generated net operating income of $2.8 million on revenue of $13.4 million, but that was not enough to meet its loan payments without extra capital from the owner, according to Trepp. The hotel had an occupancy rate of 74 percent. Increased online competition has hurt the hotel, which has been unable to raise room rates. The situation is expected to worsen as it enters its slower season starting in August.

Click here to read more on the Westin Fort Lauderdale Hotel in foreclosure.

Foreclosures, Timothy Kingcade Posts

Distressed Home Sales Increase in South Florida

Posted on October 2, 2013by Admin

A new report indicates that sales of distressed homes have greatly increased across South Florida in August, a sign that more foreclosures are working their way through the court system. Four out of 10 Broward County sales last month involved homes in some stage of repossession, according to RealtyTrac, Inc. Foreclosure-related homes accounted for only 21 percent of Broward sales in August 2012. In Palm Beach County, 36 percent of August sales involved distressed homes, up from 20 percent a year earlier.

The figures are based on county deeds and include single-family homes, condominiums and townhomes. Broward’s median price in August for distressed homes was $112,150, up 24 percent from a year ago, RealtyTrac reported. Palm Beach County’s median for distressed homes increased 21 percent to $110,000.

Individual investors and large investment firms have been buying these foreclosed properties, usually paying in cash. In July and August, nearly seven in 10 sales across Palm Beach, Broward and Miami-Dade counties were all-cash deals, RealtyTrac reported. The investors add value through renovations, then turn around and sell the homes for a profit. Investment firms tend to rent the homes for a year or longer before selling.

According to real estate agents the demand has helped the market rebound from the housing crash, but has led to a shortage of homes and kept many young families from buying.

Click here to read more on the increase of distressed home sales across South Florida.

Foreclosures, Timothy Kingcade Posts

Family’s Home Mistaken for Foreclosed Property across the Street

Posted on September 30, 2013by Admin

A woman from Ohio claims a bank mistakenly cleared items from her home confusing it for a foreclosed house across the street, then demanded receipts when she asked to be compensated for her missing possessions. Katie Barnett, 36, a nurse, said her family had left for about two weeks last month and returned to find the locks on their home had been changed and many of their belongings had been taken.

Turns out First National Bank in Wellston, had mistaken her home for a bank-owned property across the street. Two dressers and clothing for her five children were taken, as well as items from outside their home, including pool cleaning supplies and patio furniture. The house that should have been repossessed was just two houses down the street.

Barnett’s home is not the first that a bank has mistaken for a foreclosed property. Just two weeks ago, a couple in Fort Worth, TX, discovered their home was confused for a vacant home, then mistakenly demolished. She asked the bank for compensation for the missing items, which she estimated were worth $18,000.

First National Bank apologized and said “two representatives were assigned to clean and refurbish a bank-owned residential property and a GPS locator led them to the wrong home, which was located on the same street as the bank owned property.” The bank argues that the value Barnett assigned to the items is inconsistent with the list and descriptions of the items removed from the home. Barnett said she has an attorney and plans to bring a lawsuit.

Click here to read more on this story.

Foreclosures, Timothy Kingcade Posts

Florida among Top States for Mortgage Fraud

Posted on September 27, 2013by Admin

According to a recent report by CoreLogic, Florida remains one of the most at-risk states for mortgage fraud. The report revealed that Florida had an estimated value of $273 million in fraudulent mortgage applications, behind California ($864 million) and New York ($278 million). Texas ($261 million) and Virginia ($231 million) rounded out the top 5. Nationwide there were an estimated $5.3 billion in fraudulent loan applications.

Click here to read more on the story listing Florida as one of the top states for mortgage fraud.

Foreclosures, Timothy Kingcade Posts

Foreclosure Nightmare! Could this Happen to you?

Posted on September 24, 2013by Admin

An Altadena family who had been paying their mortgage on time following a loan modification they received from Ocwen Financial Corporation had their house literally sold out from under them. The unsuspecting family said that they first received a call and later a letter notifying them Ocwen had sold their loan to Nationstar Mortgage. Shortly after, they received a knock on the door telling them they had two weeks to leave their house because a company called Sage Equities had bought their home in foreclosure.

Stunned, the Sinclair’s contested that they had always paid their mortgage on time, in full, and had the documentation to prove it. But in June, after their first payment to Nationstar, the mortgage company sent a check back to them for the full amount. The family said they attempted to figure out why Nationstar was not taking their payment, but never received an answer and continued making their scheduled payments each month. What’s more interesting, Nationstar continued collecting their money, even as the Sinclair’s were repeatedly told by Sage Equities they had to leave their house.

After repeated attempts made by the Sinclair family to resolve this, a Nationstar representative finally gave them a reason for the foreclosure over the phone. They said they did not notarize one paper of the modification, when in fact they did. Following the confusion, Nationstar released the following statement: “We are very sorry for the situation Mr. Sinclair was in, and we deeply regret the difficulty he experienced. As a result of KABC bringing this situation to our attention, we were able to expedite our review and take two importation steps. First, we have rescinded the sale of the home, which means Mr. Sinclair will not have to leave his house. Second, we are going to honor the previous loan modification that was put in place.”

Unfortunately today, banks are foreclosing in ways that circumvent the law, taking a variety of shortcuts that place homeowners at a disadvantage. If this happens to you, consult an experienced foreclosure defense attorney and speak with your bank immediately. Fortunately for the Sinclair’s, they were able to stay in their home. But they say that it does not make up for the terrible experience they endured.

Click here to read more on this foreclosure nightmare.

Foreclosures, Timothy Kingcade Posts

Dina Lohan Facing Foreclosure

Posted on September 23, 2013by Admin

Troubled mom of actress Lindsay Lohan is about to lose her home according to the Long Island Press. Lender JPMorgan Chase filed new court papers on August 28 to foreclose on her $1.3 million Merrick house. Court documents read, Dina “has failed to comply with the conditions of the mortgage by failing to pay portions of principal, interest or taxes, assessments, water rates, insurance premiums, escrow and/or other charges.”

This is not the first time the bank has been after Lohan’s home. According to court documents obtained by TMZ, JPMorgan Chase Bank filed documents in 2010 to foreclose on Dina’s Long Island home because she had fallen behind on payments. That time the bank ended up cutting a deal in which Dina agreed to a new payment plan that would prevent her home from being auctioned off. Sources close to Lindsay claim that she made Dina’s payments and then supplied her with more bailout money- $40,000.

Click here to read more on the latest drama surrounding Dina Lohan facing foreclosure.

Foreclosures, Timothy Kingcade Posts

Perpetrators of Online Foreclosure Rescue Scam Sentenced

Posted on September 19, 2013by Admin

Mark Farhood and Jason Sant each pleaded guilty to conspiracy charges for operating a national online foreclosure rescue scam that deceived hundreds of distressed homeowners into surrendering their properties. U.S. District Judge Anthony J. Trenga from the Eastern District of Virginia sentenced Farhood to 11 years in prison and Sant to six years in prison. Each defendant was also ordered to forfeit approximately $2 million in fraud proceeds to the government, along with various bank accounts and other assets.

According to court documents, the conspirators co-owned Home Advocate Trustees, which also went by the names Walk Away Today, First Equity Trustees, Home Security Consultants, Sell Fast USA, Short Sale Buyer, USA Sell House Fast and USA Rental Housing. The defendants marketed the businesses nationwide as “purchasers of distressed real estate” to help vulnerable homeowners avoid foreclosure and the negative effects this could have on their credit scores.

The companies told homeowners they could negotiate with lenders to purchase mortgage notes at a discount and falsely claimed to be in business for 17 years. They also claimed they had a 90% success rate in obtaining these notes and claimed to be the nation’s largest volume buyer of short-sale and overleveraged real estate.

However, the defendants admitted in court that negotiations with lenders never occurred. They added that the scheme was a way for them to claim hundreds of residential properties at basically no cost and then reap millions of dollars in profits by renting the homes to unsuspecting tenants.

In addition, as part of the scam, the operators submitted fraudulent loan modification applications to lenders under the Treasury Department’s Making Home Affordable Program in the name of the homeowners without their consent. These inaccurate applications were meant to delay the lenders from foreclosing on the properties, which allowed the scammers to maximize the time period during which they could collect rental income from unsuspecting tenants.

Click here to read more about the online foreclosure rescue scam.