Foreclosures Archives - Page 36 of 57 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

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.

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.

Florida’s Foreclosure Rate Drops to No. 2

Posted on September 17, 2013by Admin

Florida has fallen to the No.2 spot in the nation for foreclosure activity in August behind Nevada after three consecutive months at No. 1, according to RealtyTrac. In August, one in every 383 residences in Florida received a foreclosure filing. A total of 23,372 Florida properties received foreclosure filings in August, down 14 percent from July and down 15 percent from a year earlier.

The decrease in Florida foreclosure activity reflects a 65 percent decrease in new filings, which hit their lowest level since RealtyTrac began issuing its state report in April 2005.

In Miami-Dade County, one in every 264 residences received some type of foreclosure filing in August, as foreclosure activity fell 19.88 percent from a year earlier and declined 14.13 percent from July, according to RealtyTrac. In Broward County, one in every 372 residences received a foreclosure filing in August. That reflected a 12.23 percent decline in foreclosure activity from a year earlier and a 27.28 percent decline from July. In both Miami-Dade and Broward, new foreclosures filings were down in August from a year earlier, while auction notices and bank repossessions increased.

Among the 20 largest metropolitan areas, Miami posted the highest foreclosure rate, and Tampa ranked second.

Click here to read more on Florida falling to the No. 2 spot in the nation for foreclosure activity.

Foreclosures, Timothy Kingcade Posts

Reversal in Condominium Association Case Likely to Impact Foreclosures Statewide

Posted on September 16, 2013by Admin

Florida’s Fourth District Court of Appeal in West Palm Beach recently reversed a Final Judgment foreclosing a lien in favor of the Sebastian Lakes Condominium Association. This could ultimately affect how contested foreclosure cases throughout the State are tried. In Yang v. Sebastian Lakes Condominium Association, the court ruled in a consolidated appeal that the testimony of the plaintiff-association management company’s records custodian was insufficient. Without that necessary testimony, the introduction of business records upon which the association relied to establish how much money it was owed was error requiring the reversal.

The case arose from a condominium association’s attempt to collect past due assessments from unit owners, which involved the critical issue- admission of business records into evidence. Given the similarities between lien foreclosure and mortgage foreclosure cases, it will likely have ramifications in both types of cases for years to come.

The Sebastian Lakes Condominium Association filed suit to collect monies allegedly owed to it by a husband and wife who each owned one unit in the condominium. The husband and wife denied the association’s claims and asserted that the association failed to credit their accounts with all payments made, and claimed that the collection actions were brought in retaliation because they were part of a group investigating $100,000 in missing association funds.

The appellate court reversed the final judgments in favor of the association because the management company employee could not testify as to the starting account balances, never worked with the prior accountant and was unfamiliar with his recordkeeping. This decision overturning a final judgment entered after trial will be important in ongoing and future foreclosure trials and even motions for summary judgment because it establishes what a records custodian must testify to for the admission of business records. Plaintiffs in such contested matters typically rely upon records and custodian witnesses rather than persons with the actual knowledge of the underlying lien or mortgage.

In order to establish the amount owed to it using business records, a plaintiff in a foreclosure action must now be able to present a witness who says not only the “magic words” but who also can testify as to the basis for all amounts claimed to be owed, rebut defendants’ claims of unaccredited payments, and to the other facts Sebastian Lakes’ witness could not.

Click here to read more on the recent reversal and how this is likely to impact foreclosures statewide.

Foreclosures, Timothy Kingcade Posts

Five Mortgage Scams to watch out for

Posted on September 12, 2013by Admin

Thousands of homeowners are tricked into mortgage scams each year and con artists do not have to look hard for victims. Most of the victims reach out to scammers themselves online. Instead of finding help to their mortgage woes through an Internet search, they find a scam. The sluggish economy and slow recovering housing market have created the perfect environment for mortgage scams.

Below are five mortgage scams to watch out for:

1.) A theft in-‘deed’. This scam lures struggling homeowners in by promising them better interest rates and lower mortgage payments. The borrower is then asked to sign supposed mortgage papers. One of the pages in the large stack of documents is a deed that once signed, transfers ownership of the property to the perpetrator.

2.) Phantom of the loan modification. NEVER pay upfront fees for a loan modification. Despite numerous warnings and educational campaigns warning homeowners of this, scam stories of borrowers who paid $1,000 to $5,000 for a loan modification, but received nothing in exchange are widespread.

3.) Your mortgage has been sold- NOT! Banks often buy and sell residential mortgages, and con artists take advantage of that. They create fake companies, pretend they are the new owners of your loan and take your payments until you figure out it’s a scam. Most unsuspecting victims do not learn about the mortgage scam until their actual lender notifies them that their mortgage is in default. To be on the safe side, contact your servicer and double check that your loan was sold to another company before blindly making payments to a new company- even if the letter you receive appears legitimate.

4.) Steer clear of reverse mortgage scams. Elderly homeowners are easy targets for con artists. They are also more likely to have equity in their homes. Reverse mortgages allow homeowners who are 62 or older to borrow against the equity in their homes without having to make monthly mortgage payments. Normally, the scammer wants to steal the equity in the home or use the senior citizens as straw buyers and borrowers. Another scam involves, a con artist recruiting an innocent senior to be the ‘fall guy’ in the fraud. The scammers buy a distressed property then manipulate the senior into signing the deed, taking ownership of the house. Once the house is in the senior’s name, the scammers use an inflated appraisal to get a reverse mortgage. They steal the money, and the senior and the lender get stuck with the loss.

5.) Avoid lease/buy-back agreements. Thanks to public records, con artists in many states know when a home is in foreclosure. Once they identify distressed borrowers, they persuade them to sign a quitclaim deed, which transfers the property ownership into a land trust. In lease/buy-back mortgage scams, the perpetrator promises the deed transfer is temporary and you will be able to rent the home from the new owners and eventually repurchase the home after you get back on your feet. Depending on how much you owe on the home, the scammer may simply collect the rent from you and let the bank evict you and sell the house themselves.

Click here to read more on the top five mortgage scams.

Credit, Foreclosures, Timothy Kingcade Posts

FHA Gives Foreclosed Borrowers a Second Chance at Homeownership

Posted on September 5, 2013by Admin

The Federal Housing Administration (FHA) is offering a homeownership program that will put previously troubled borrowers on the fast track to owning a home, again. This new program, called “Back to Work-Extenuating Circumstance,” shortens the standard three-year waiting period to 12 months. As part of the FHA’s ongoing mission, the new program aims to make sure that qualified borrowers are not being unnecessarily shut out of the housing market.

This is good news for borrowers who lost their home because of specific financial hardships, but can now demonstrate that they have regained their financial footing.

Individuals that have been through any of the below financial hardships are eligible for the program:

• Chapter 7 or Chapter 13 bankruptcy
• Deed-in-lieu
• Forbearance
• Foreclosure
• Loan modification
• Loss of income, employment or both that totaled at least 20 percent of previous earnings for at least six months, including copies of applicable termination notices or changes in employment status.
• Pre-foreclosure sales
• Short sales

Borrowers must also meet other verifiable requirements to participate in the program. These include:
• Proof of borrower’s current income. This can be verified with W-2 forms or federal tax returns that show the desired mortgage would be affordable and sustainable.
• Credit history, both before and after the financial hardship event. This information must be free from late payments or other major credit issues, including rental / housing payments and accounts delinquent by 30 days or more.
• A credit score of at least 500.
• Housing counseling by a HUD-approved counselor at least 30 days but no more than six months before
submitting an FHA application.

For consumers meeting all of these criteria as well as other FHA mortgage guidelines, the “Back to Work program” is now available nationwide through FHA-approved lenders. Once participating lenders determine that mortgage applicants meet all eligibility and policy criteria, the same 3.5 percent minimum FHA down payment requirement will apply. Mortgage insurance and closing costs will also apply. The only FHA program that is ineligible for the “Back to Work program” are reverse mortgages.

Click here to read more on the new FHA program that gives foreclosed borrowers a second chance at homeownership.

Foreclosures, Timothy Kingcade Posts

Jacksonville Leads U.S. in Foreclosures

Posted on September 3, 2013by Admin

According to the Florida Legislatures Office of Economic and Demographic Research, Jacksonville led the United States in foreclosures last month. The data also reflected that Florida had the highest number of foreclosure filings nationwide. Among the highest U.S. metro area rates, nine of the top 10 were in Florida, led by Jacksonville, followed by Miami-Fort Lauderdale, Port St. Lucie, Ocala and Palm Bay-Melbourne.

According to data from RealtyTrac, Florida posted the nation’s highest state foreclosure rate for the third consecutive month in July, with one in every 328 housing units with a foreclosure filing during the month. This number is more than three times the national average!

Florida foreclosure activity continues to increase. According to the data, 16 of the last 19 months foreclosure activity has increased on an annual basis in Florida. Scheduled foreclosure auctions increased 74 percent from a year ago and bank repossessions increased 13 percent from a year ago.

Click here to read more on the recent report showing the city of Jacksonville leading the U.S. in foreclosures.

Credit, Foreclosures, Timothy Kingcade Posts

TREND ALERT: 69% of Home Sales Are Cash in S. Florida

Posted on September 2, 2013by Admin

According to a recent article in the Sun-Sentinel, 69 percent of all South Florida home sales last month were cash deals. Across the state, 66 percent of home sales were cash, compared with the national rate of 40 percent- which many housing experts are calling “astounding.” With one of the nation’s highest foreclosure rates, South Florida has a large supply of bank-owned properties.

Lenders have become less interested in waiting for traditional buyers to qualify for mortgages, and instead, have opted to sell to investors who are willing to pay cash for properties. This in turn, has shut out many entry-level homebuyers.

So who are these cash buyers? Much of the cash buying in South Florida is from foreigners who view condominiums as safe investments. In the past year, large funds have entered the region, buying single-family homes and renting them out for a year or longer.

Among Florida’s metropolitan areas, the South Florida metro area — covering Palm Beach, Broward and Miami-Dade counties — was second only to Brevard for cash deals. One factor in cash buyers’ favor has been the tightening of mortgage requirements following the easy-lending standards that proceeded the 2007-09 recession.

Click here to read more on the increasing number of cash sales for homes in South Florida.

Credit, Foreclosures, Timothy Kingcade Posts

Government Relaxes Mortgage Down Payment Standards

Posted on August 30, 2013by Admin

This week, Federal regulators proposed a new rule that would make mortgage lending standards less restrictive. The proposed Qualified Residential Mortgage rule was supported by both consumer advocates and mortgage industry members- an otherwise rare occurrence- largely because it eliminates much stricter down payment rules that the previous version of QRM would have created.

The Consumer Financial Protection Bureau’s Qualified Mortgage (QM) rule requires lenders to underwrite home loans based on the borrower’s ability to repay the loan, a step the agency took to combat some of the bad lending practices that led to the housing crisis.

Under the CFPB’s QM rule, borrowers must provide income documentation that they can repay the loan, and that their debt-to-income ratio does not exceed 43 percent, among other requirements. It does not, however, have any rules requiring lenders to ask for a set down payment amount.

QRM would have required lenders to demand a 20 percent down payment from borrowers. The rule was intended to prevent unqualified borrowers from taking out a mortgage they can’t handle, but housing advocates and mortgage industry members argued that it instead prevented too many qualified and responsible low- to middle-income borrowers from taking out a mortgage.

According to some housing experts, aligning the QRM rule with the QM rules will allow more American families to become homeowners and ensures that housing markets can remain strong in the future. This is especially important for communities that are still rebuilding from the foreclosure crisis.

The National Association of Realtors President Gary Thomas called it a “a victory for homebuyers and the future of homeownership in this country.”

Click here to read more the new rule that would make mortgage lending standards less restrictive.

Bankruptcy Law, Foreclosures, Timothy Kingcade Posts

FHA Shortens Waiting Period for Borrowers Who Experienced Foreclosure or Bankruptcy

Posted on August 28, 2013by Admin

The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu or short sale to reenter the market in as little as 12 months. Previously, borrowers who experienced a foreclosure had to wait at least three years before getting a chance to be approved for an FHA loan. To qualify for the more lenient approval process, documents must show ‘certain credit impairments’ were from loss of employment or loss of income that was beyond the borrower’s control. The lender must also verify the income loss was at least 20 percent for a period lasting for at least six months.

Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling. Housing counseling must come from a HUD-approved housing counseling agency and be completed at least 30 days but no more than 6 months before applying for a loan. Recovery from an economic event involves reestablishing ‘satisfactory credit’ for at least 12 months. The criterion for ‘satisfactory credit’ includes 12 months of good payment history on either a mortgage, rent or credit card account.

This more lenient approval process applies to case numbers assigned on or after August 15, 2013 and is effective through September 30, 2016.

Click here to read more on the FHA’s more lenient approval process allowing borrowers to reenter the housing market in as little as 12 months.

Foreclosures, Timothy Kingcade Posts

South Florida Home Sales- Prices Rise by Double Digits in July

Posted on August 22, 2013by Admin

Sales volume in South Florida today is matching the 2005 housing boom, although the median prices are far lower. More single-family homes were sold in July in Miami-Dade County than at any time since the peak of the housing boom. Supply and demand is what is driving the market. Supply is lacking and demand is high as homebuyers are trying to capitalize on the low mortgage interest rates.

The median price of a single-family home in Miami-Dade soared 25.7 percent in July to $230,000 from $183,000 a year earlier, the Miami Association of Realtors recently reported. Single-family home sales in Miami-Dade jumped 27.3 percent in July to 1,227 closings from 964 a year earlier. That marked the highest sales volume since 2005, when the median price was $351,200.

Miami-Dade has seen 20 consecutive months of price increases in both single-family homes and condominiums. Experts attribute the increase to a heightened demand and the low mortgage interest rates being offered. However, interest rates are steadily rising as the housing market is gaining momentum and posting dramatic gains. The average rate on a 30-year, fixed-rate mortgage is 4.74 percent, up more than a full percentage point from 3.61 percent in early May, according to HSH.com.

Click here to read more on South Florida home prices rising double digits in July.