Foreclosures Archives - Page 39 of 56

Foreclosure Compensation Checks Arrive, Some Homeowners Angered

Posted on May 16, 2013by Admin

Millions of American homeowners who have struggled with foreclosures are now receiving checks in the mail for compensation from the companies that serviced their mortgage- part of the government’s efforts to resolve the foreclosure crisis. But some homeowners are claiming these checks are an insult, that neither punish the banks nor helps homeowners recover.

A Seattle homeowner said she recently received a check for $300. “It was more than pathetic. It was insulting,” she said. The struggling homeowner claims she spent more money on postage providing government agencies with detailed descriptions of what had happened in her case. The compensation payment checks, which range from $300 up to $125,000, are part of the Independent Foreclosure Review Payment Agreement announced in January between federal regulators and 13 mortgage servicing companies, which were subject to enforcement actions for “deficient practices in mortgage loan servicing and foreclosure processing.” Deficient practices have included errors and misrepresentations and the “robo-signing” of documents.

The recipients of the checks are mortgage loan borrowers whose homes were in any stage of a foreclosure process during 2009 or 2010, and whose mortgage servicers were among the 13 companies, or their subsidiaries or affiliates. The 13 servicers are: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. Compensation payment checks, which began going out April 12, have so far been sent to 3.7 million homeowners. In all, 4.2 million eligible mortgage loan borrowers will receive them.

Click here to read more on the foreclosure settlement checks, which are angering many struggling homeowners.

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 website, www.miamibankruptcy.com.

Extension of HARP Means More Time to Refinance!

Posted on May 9, 2013by Admin

A two-year extension has been allotted for the government-sponsored Home Affordable Refinance Program (HARP). This is great news for underwater homeowners! HARP was set to expire at the end of 2013; however, according to the Housing Finance Agency, it will now extend through 2015 giving underwater homeowners more time to refinance.

By qualifying for HARP, underwater homeowners can expect to see their mortgage rates drop to as low as 4 percent. During the fourth quarter of 2012, 39.6 percent of mortgages in South Florida were worth less than what was owed. Although this number was down from 47 percent a year ago, this is still much higher than the national average. Not only are underwater homeowners at risk of foreclosure, they also cannot sell their property without bringing thousands of dollars to the closing table. According to the FHFA Acting Director, more than two million homeowners have refinanced through HARP. This program not only benefits homeowners, it benefits taxpayers and mortgage companies such as Fannie Mae and Freddie Mac.

According to the FHFA, in January 56 percent of Florida’s refinances were through HARP. The agency is planning a national campaign to educate homeowners on the program and how they can take advantage of it before it ends in 2015. In order to qualify, a homeowner’s mortgage must have been sold to Fannie Mae or Freddie Mac before May 31, 2009 and the loan-to-value ratios must be greater than 80 percent.

Click here to read more about the extension of HARP.

http://www.sun-sentinel.com/business/fl-harp-extension-20130427,0,1882210.story

Foreclosures, Timothy Kingcade Posts

Foreclosures are Returning to Pre-Recession Levels

Posted on April 26, 2013by Admin

The foreclosure filing rate has been dropping to levels not seen since before the housing market crashed in 2008. These include notices of default, scheduled auctions and bank repossessions. During the first quarter, the levels fell 23 percent from 2012. This is the lowest level since the second quarter of 2007. During March, the banks repossessed fewer than 44,000 homes, compared with September 2010 when the banks repossessed 100,000. RealtyTrac Vice President, Daren Blomquist said he expects to be back to normal foreclosure levels by 2014.

Foreclosure rates have been declining for the past couple of years because homeowners have been seeking alternatives such as filing for bankruptcy or a short sale. Government programs such as the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP) have also helped homeowners avoid foreclosure. The $25 billion settlement deal between federal officials and the five largest mortgage lenders have also pushed the banks to agree to help struggling homeowners. As a result, the largest percentage of the foreclosure activity in the country is occurring in areas that are suffering severe economic problems and no longer in mid to upper-class neighborhoods. Many Americans who are now dealing with foreclosure are those who have recently been laid off or filed for divorce from their spouse.

Click here to read more on foreclosures returning to pre-recession levels.

Credit, Foreclosures, Timothy Kingcade Posts

3 Reasons the Housing Market Recovery Might Not Last

Posted on April 23, 2013by Admin

The housing market has made a big comeback this year! Home prices have increased approximately 8 percent and interest rates have hit record-lows. However, some experts worry that the housing market will crash just as quickly as it has surged.

Below are three main reasons industry experts worry the recovery might not last.

1. Investors are leading the housing market recovery. Investors have been taking advantage of low interest rates by buying up a huge portion of the real estate inventory. However, when prices begin to rise, economists believe that investors will likely pull back. Many believe an investor-driven boom led to the original housing bubble.

2. The economic recovery is not strong enough, yet. There are many factors within the economy that can still hurt the housing market, such as employment. After gaining some momentum during 2012, the job market has been showing signs of weakness in recent months. Once the job market picks up, the housing market should gain some strength.

3. Government cuts will hurt homeowners. The housing market recovery will be greatly affected by the $85 billion worth government spending cuts. The cuts include unpaid days off for federal workers, cuts in unemployment compensation and decreased military spending. All of which will lead to job and income losses.

Click here to read more on the three reasons why the housing market recovery might not last.

Credit, Foreclosures, Timothy Kingcade Posts

Postcard Alerts of Foreclosure Cash Could Be Ignored

Posted on April 19, 2013by Admin

Beginning this month, hundreds of thousands of Floridians are expected to receive foreclosure-restitution checks through federal agreements with banks. The fear is that the letters might be mistaken for a scam or junk mail and will be thrown out. It is estimated that approximately $3.6 billion will be awarded to 4.2 homeowners nationwide who were facing foreclosure in 2009 and 2010. Those who are eligible for the cash should have received a postcard in late March alerting them that they would be receiving a check worth between $250 and $125,000. The postcards were sent out by Minneapolis-based Rust Consulting, the firm contracted by federal regulators to disburse the checks. Homeowners have been wary of the postcards and checks due to already being overwhelmed with foreclosure-related mailings.

The Office of the Comptroller of the Currency offered agreements with 13 financial institutions to compensate for foreclosure-related abuses and replace the Independent Foreclosure Review. Homeowners were asked to apply to have their foreclosure inspected and receive compensation based on the findings. However, few people signed up for the review. In November of last year, approximately 3.8 percent of Floridians who were sent letters about the program had applied. This proves that homeowners are so uneasy about anything foreclosure-related, they are willing to miss out on compensation for foreclosure abuse.

Click here to read more about the postcard alerts of foreclosure checks being sent to Floridians throughout the month of April.

Foreclosures, Timothy Kingcade Posts

New Foreclosure Bill – Good for Banks, Bad for Homeowners

Posted on April 18, 2013by Admin

A bill to speed up the Florida foreclosure process is headed to the House floor this legislative season. However, consumer advocate groups believe HB 87 will favor banks rather than homeowners. According to Rep. Cynthia Safford, ‘the bill diminishes the rights of homeowners and consumers.’ This bill is the Legislature’s third attempt in three years to address the backlog of foreclosures in Florida. A Senate companion bill is also moving through the committee process. This bill forces banks to disclose the correct documents and also shortens the statute of limitations for post-foreclosure lawsuits against homeowners.

Consumer advocates are pointing out some of the other provisions that are a bit more controversial. The bill states that homeowners cannot get their home back after a fraudulent foreclosure if it has been sold to another person. Another controversial point in the bill is that it would allow condominium associations to speed up the foreclosure process on homeowners who have not paid their dues. Florida has the largest foreclosure inventory than any other state in the nation. Currently there are more than 300,000 homes in the process of foreclosure. Additionally there are hundreds of thousands that are at risk of foreclosure.

Click here to read more on HB 87 and what it can mean for you.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Credit Card Delinquencies Reach 18-Year Low

Posted on April 16, 2013by Admin

Credit card users are using some of the best bill paying practices in nearly two decades. In the fourth quarter of 2012, delinquencies on bank-issued credit cards sank to 2.47%. This is the lowest level of delinquencies since 1994, according to an American Bankers Association report. It was significantly down from the previous quarter, which was 2.75%. The record high was set in 2009 at 5.01%. According to ABA Chief Economist James Chessen, credit card delinquencies fell throughout most of 2012.

In addition to consumers being more careful about paying their bills on time, banks are also being more conservative when approving people for credit cards. Banks are taking steps to ensure the consumer has the capacity to repay their debts. Delinquencies in three real estate related categories also fell in the fourth quarter: home equity loans, home equity lines of credit and property improvement loans. These declines reflect another sign of the housing market recovery. Auto loan delinquencies arranged through third parties, such as car dealers, also dropped in the fourth quarter to 1.85%, down from 2.08% in the previous quarter. However, credit card delinquencies on mobile homes and boats both increased at the end of 2012. Student loan 90-day delinquencies also increased during the fourth quarter of 2012 to 11.7%, up from 8.69% at the end of the first quarter of the year.

Click here to read more about the 18-year low on credit card delinquencies.

If you are in a financial crisis and are considering filing 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.

Credit, Foreclosures, Timothy Kingcade Posts

Federal Government to Investigate Florida’s Housing Program

Posted on April 15, 2013by Admin

Last week, the federal government announced that it would begin investigating the Florida Hardest Hit Fund. The $1 billion state housing program is designed to help homeowners avoid foreclosure. The investigation was called for by U.S. Senator Bill Nelson who said the program was poorly run and not reaching enough people. Sen. Nelson went on to say that it is good news for Florida homeowners and will give them more access to the help that should be available to them.

The program was established as a part of a national program to help homeowners who are struggling as a result of the Recession. However, the program has been struggling to reach those who need assistance. As of March 1, 2013, only approximately 38 percent of the processed applications had been approved. Nearly half of the applicants had yet to be told whether they would get help from the Hardest Hit Fund. Broward County had more applicants than any other county in the State of Florida, with more than 6,000 of the 44,854 applications. The Florida Housing Finance Corp. administers the Hardest Hit Fund and defended the program last month in a letter to Sen. Nelson. In the statement, the agency’s executive director stated that the fund has been reviewed by the U.S. Department of Treasury and two state agencies, which found no evidence of wrongdoing.

Click here to read more about the Federal Government’s announcement to begin investigating the Florida Hardest Hit Fund.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

How to Choose A Mortgage Lender

Posted on April 3, 2013by Admin

There has been a lot of buyer concern the past few years in the real estate market. Even those who have not been greatly affected by the Recession and have the means to buy a house may be stalling due to a lack of trust in mortgage lenders. Now that the housing market is stabilizing and lenders are being monitored more closely, buyer confidence is on the rise. The latest question for those looking to buy is, “How do I choose a mortgage lender?”

Here are a few things to remember when choosing your mortgage lender:

Beware – Mortgage people are salespeople. Following the housing market crash, homebuyers are looking for the most skilled financial mortgage experts out there. However, you have to understand that many representatives you will speak with are not qualified to answer the questions you may ask. You cannot assume that all of the loan officers have proper training and credentials, just because you chose a well-known institution. Work with the most knowledgeable loan officer, not the best salesperson.

Beware of the “In-House” Lender. Many real estate companies have “in-house” lenders that work out of the real estate office. This is mutually beneficial for the real estate company and the lender because of the convenience factor. The “in-house” lenders can be a great choice; however, it is best to do your homework. Make sure the “in-house” lender and the officer have the expertise and credentials to properly handle your mortgage.

Beware of Online Discount Mortgage Financing Options. Although it may be advertised that discounted options are available online that leave out the “brick and mortar” costs associated with traditional lenders, this is not always true. Even if you close online or over the phone, the brick and mortar costs are still a part of the income statement. These “discounts” are simply advertisements and tend to be very misleading.

Word of Mouth Trumps All. A general rule of thumb with any choice in services or goods is to ask those around you about their experience with the product or service. If you know of anyone who has recently purchased a home, ask about their experience. With all of the recent changes to the market, it is best to ask more than one recent buyer. Other great sources of information include: financial advisors, accountants, attorneys or realtors.

Click here to read more on this topic and find out which mortgage lender is right for you:

Credit, Foreclosures, Timothy Kingcade Posts

Rebuilding Your Life After Foreclosure

Posted on April 1, 2013by Admin

Record-breaking foreclosure rates have been a popular topic in the media since the housing market crashed. Unfortunately, we do not hear much about what happens to these families after they have lost their homes. Homeowners who have been foreclosed on by their lenders face many hardships, even after the dust has settled from their case. Below are some of the issues that foreclosure victims face and some smart solutions to their problems.

Finding a New Place to Live
Finding a new place to live is the most dire and immediate challenge foreclosure victims face. Many who have recently been foreclosed on do not have the cash for a deposit for rental property. Also, many landlords will not accept a renter with lower credit scores, which many foreclosure victims have. The best thing to do is to make plans as soon as you think you might be foreclosed on. This will allow you time to save up some cash to rent, if need be.

Suffering Through the Credit Fallout
Once other creditors find out that you have been foreclosed on, they tend to think it is likely that you will default on your debt with them, as well. As a result, you are likely to be forced to pay an inflated interest rate. Some foreclosure victims see interest rates rise as much as 30 percent. The best thing you can do is work toward rehabilitating your credit score as fast as you can, to be eligible for lower interest rates.

Purchasing a New Home
If you were foreclosed on due to circumstances that were beyond your control, such as unemployment, you are more likely to be eligible for a mortgage in the near future. Many foreclosure victims are able to obtain a mortgage again within three years of a foreclosure. Federally insured mortgages are the best option for foreclosure victims, i.e. FHA loans. However, you must understand that in order to obtain a mortgage in three years, you will need to prove that you have been practicing good bill-paying habits since the foreclosure.

Explaining Your Foreclosure to a Potential Employer
In financial-related fields, it is not uncommon for employers to run credit checks on potential employees to see how financially responsible the person is. If you have recently been foreclosed on and are applying for a position where you will be handling money, you should have an explanation ready for your potential employer.

Post-Foreclosure Tax Bill
If you have been foreclosed on and your home has been sold in an auction, you may be billed for taxes your lender was not able to recover from the sale of the property. However, there are some reasons you may not be obligated to pay the tax bill. If you are financially insolvent, the IRS may allow the debt to be forgiven.

Click here to read more on ways to rebuild after a foreclosure.