Foreclosures Archives - Page 8 of 56

Foreclosure Myths Debunked

Posted on December 29, 2017by Admin

The thought of losing one’s home is scary, and because the foreclosure process can be complicated there are a lot of misconceptions and myths surrounding it. Here are some common myths disproved.

Foreclosure happens fast. Even though the foreclosure process can happen in as few as 6 months in some states, it is taking much longer to process the average foreclosure. Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in Florida and 26 months in New York. The fact that foreclosure is not happening nearly as fast, gives struggling families who are temporarily down on their luck some time to get back on their feet and figure out a financial plan to save their home.
Buyers cannot get clear title or title insurance on foreclosed homes. Buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the “bona fide purchaser rule,” under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer.
Having a foreclosure on your credit history means it will take five years before you can buy again. One of the most frequently asked questions from homeowners facing foreclosure or who have just lost their home is how long will it take before they will be able to purchase another home. Until recently, it was assumed that it would take 5 years, minimum, before being able to purchase a new home. However, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement 3 years after foreclosure. Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan. A foreclosure itself will diminish a consumer’s credit score by 100-150 points. Former homeowners who want to purchase again need to ensure they have no other late payments or credit dings after they lose their home.

Click here to read more on this story.

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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Foreclosures, Student Loans, Timothy Kingcade Posts

Exceptions to Paying Tax on Forgiven Debt

Posted on December 28, 2017by Admin

If you recently had debt forgiven or negotiated down last year, you likely breathed a sigh of relief. However, if you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount as income on your tax return, depending on the circumstances. Before you write a check to the IRS, see if you qualify for one of these exceptions to paying tax on forgiven debt.

Debts discharged in bankruptcy. If you filed for bankruptcy protection, you do not have to pay tax on the canceled debt.
Mortgage debt forgiven due to foreclosure. Originally set to expire after the 2012 tax year, the Mortgage Forgiveness Debt Relief Act protects you from having to pay tax on debt forgiven when you lose your home in foreclosure. The deadline has been extended several times, most recently in December 2015 to include the calendar years 20017 through 2016. And in early 2017, a bill to grant another exemption was introduced to Congress.
Debts canceled when you were insolvent. This is the most common exception, because debt is generally only cancelled when debtors are “insolvent” (i.e. – completely broke). This exclusion only applies up to the amount by which you are insolvent.
Student loans forgiven after you have worked for a period of time. If your student loans contain a loan forgiveness provision based on service in your profession, do not include the canceled debt as income. In addition, certain federal student loans that were discharged by the U.S. Education Department’s “Defense to Repayment” or “Closed School” discharge process are exempt. These apply to students at Corinthian Colleges and American Career Institutes Inc.
Forgiven interest that would have been deductible. For example, interest on a business debt. You are not required to pay tax on the portion of the debt due to interest, if you could have deducted the interest if you had paid it. However, if it was interest on a personal credit card- you must pay taxes on all the forgiven debt, including the interest.
Cancellation of debt as a gift. If the cancellation of debt is a gift, it is not income. Generally, the IRS will believe you if you say the debt payoff was a gift between parties such as family members or friends.
Business and farm exceptions. You may not have to pay tax on canceled debt if it was in connection with your farm or if the debts were tied to business real estate and were forgiven when you owed more money than the property was worth.

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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://www.creditcards.com/credit-card-news/six-exceptions-paying-tax-forgiven-debt-1282.php

https://www.irs.gov/newsroom/home-foreclosure-and-debt-cancellation

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Hurricanes could bring with it another disaster: Foreclosures

Posted on December 8, 2017by Admin

As life returns back to normal for the hurricane ravaged parts of Florida, Texas and Puerto Rico, housing and consumer experts are warning of another crisis looming: The threat of foreclosure. Legal aid groups are working with borrowers who are struggling to make their current mortgage payments on homes made uninhabitable by the storm, while paying rent somewhere else.

Approximately, 4.8 million mortgaged properties were in the eye of Hurricanes Harvey, Irma and Maria, representing nearly $746 billion in unpaid principal balances, according to financial data firm Black Knight. In September, the number of loans that were more than 30 days past due rose 48% in Irma-affected areas and 67% in Harvey-affected areas, according to Black Knight found. The numbers have not been run yet for Puerto Rico.

For many homeowners, months of postponed payments were suddenly due all at once after that grace period ended, creating an overwhelming financial burden.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Richard Cordray Resigning As CFPB Director by December

Posted on November 21, 2017by Admin

Director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, recently announced in an email to his employees that he is resigning by the end of November. Cordray was nominated in 2012 by President Obama and was confirmed as the first official head of the CFPB the next year.

Under Cordray’s leadership, the CFPB supervised and enforced $11.8 billion in financial relief to consumers, including monetary compensation, principle reductions and canceled debt. The CFPB also spearheaded the lawsuit against Wells Fargo last year. The bank was ultimately forced to pay $185 million in fines after secretly opening phony accounts that were not approved by current customers.

Since President Trump has taken office, the CFPB has come under fire with some Republicans in Congress who believe the agency has too much power and no oversight. However, many in the democratic party such as Elizabeth Warren see Cordray as a tireless public servant. Warren said in a statement, “he held big banks accountable,” and “he will be missed.”

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. 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 McMaken. 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 McMaken website at www.miamibankruptcy.com

Related Resources:

https://lendedu.com/news/richard-cordray-resigning-as-cfpb-director-by-december/

https://www.boston.com/news/politics/2017/11/15/heres-what-elizabeth-warren-said-about-the-expected-resignation-of-cfpb-director-richard-cordray

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Appellate Court Rules Miami-Dade Judge Erred in Denying Foreclosure

Posted on November 13, 2017by Admin

“The trial court was not authorized to deny foreclosure merely because it believed the borrower signed a ‘bad bargain,’ ” wrote Third DCA Judge Richard Suarez, with Chief Judge Leslie Rothenberg and Judge Vance Salter concurring. “ We thus reverse the entry of involuntary dismissal and remand for entry of final judgment of foreclosure.”

The appellate panel ruled the court improperly excluded evidence and based judgment partially on a defense the homeowner’s counsel did not raise. The homeowner, Alfredo Brito was making his monthly mortgage payments as usual when in June 2008 his payment was rejected by his loan servicer. From then on no more payments were made.

Two years later, the loan servicer advised Brito he was in default and demanded $60,000 as a remedy. Lender Deutsche Bank National Trust Co. then brought a foreclosure proceeding. Brito’s original loan servicer was absorbed by Ocwen Loan Servicing in 2012. Miami-Dade Circuit Senior Judge Judith Kreeger excluded the demand letter and the payoff printout when she should have admitted them, the appellate court ruled.

“Brito was elderly, suffered from dementia and paid religiously and was forced into foreclosure because of the predatory financial product,” said his attorney. “Under the circumstances, it’s appropriate to require Ocwen to comply with the rules of evidence and Florida Supreme Court precedent. No court is authorized to grant the equitable relief of foreclosure if there is unclean hands or insufficient evidence of standing to foreclose merely because the borrower defaulted on their mortgage,” he continued.

Click here to read more on this story.

Debt Relief, Foreclosures, Timothy Kingcade Posts

Phony South Florida “Lawyers” Face Prison Time after Scamming Distressed Homeowners

Posted on November 9, 2017by Admin

A number of South Florida homeowners were recent victims to two scam artists, posing as attorneys promising mortgage relief, but instead pocketed the upfront fees they charged. Joseph Anton Hilton and Adam Todd Forman plead guilty to federal charges in connection with the scheme.

Authorities say the pair operated phony law firms based in Coral Springs, Boca Raton and West Palm Beach, FL. The pair posed as lawyers and even manipulated real attorneys into working on their behalf. They tricked homeowners into paying legal fees in lieu of making mortgage payments. Hilton and Forman targeted homeowners across Florida and in other states, including New Jersey and Ohio, according to authorities.

The Florida victims were from cities including Sunrise, North Palm Beach, Cooper City, Miami, Fort Lauderdale, Hollywood, Miramar and Delray Beach.

The Attorney General’s office said the fake law firms had more than 300 clients who could have potentially been harmed.

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. 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Foreclosures

Struggling with Bad Credit? Here are some ways you can still qualify for a Mortgage

Posted on November 8, 2017by Admin

Having a poor credit score, does not necessarily mean a home is out of reach. There are organizations and resources available to help homeowners get assistance with a down payment and find lenders willing to work with them.

Here are few options that are worth looking into:

FHA Loans. These type loans, insured by the Federal Housing Administration (FHA) have flexible lending requirements and if you have a credit score of at least 580, you may qualify for a FHA loan requiring a down payment of no more than 3.5%. Have a credit score between 500 and 579? You can still get approved, but you will have to provide a down payment of at least 10 percent.

VA Loans. VA loans are reserved for eligible veterans and do not require a down payment or mortgage insurance. There is not a set minimum credit score for VA loans. Lenders who offer these loans will have their own credit requirements.

Good Neighbor Next Door Program. The Good Neighbor Next Door program is offered by the Department of Housing and Urban Development (HUD) and is reserved for teachers, law enforcement officers, firefighters and emergency medical technicians. This affordable housing program offers two big incentives: Eligible borrowers can qualify for 50 percent off the list price of the home if they commit to using the property as their sole residence for 36 months; and homes can be bought with as little as $100 down.

Filed bankruptcy or foreclosure? If you have filed for bankruptcy or foreclosure, you can still own a home again and qualify for a mortgage. Some borrowers may even qualify for an exemption. For example, if the bankruptcy or foreclosure was due to a job loss or health problem, the lender may ask for an “extenuating circumstances letter.” This is an explanation of the events that led up to the bankruptcy or foreclosure, events that were beyond your immediate control.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Just How Often Do Debt Collectors Harass People? The Answer Might Surprise You

Posted on October 26, 2017by Admin

According to the Consumer Financial Protection Bureau (CFPB), debt collectors are required to stop calling once an official request has been made to cease communication. However, approximately 75 percent of consumers who have asked for debt collection calls to stop say that the calls kept coming.

The CFPB released a report earlier this year that surveyed over 10,800 consumers in 2014 and 2015 about their recent experiences with debt collectors. They received approximately 2,000 responses that revealed that over one in four consumers have felt threatened by the debt collector that most recently contacted them. Although debt collection agencies are not allowed to abuse or harass consumers, many collectors do not play by the rules. Approximately 40 percent of consumers surveyed said they asked a creditor or debt collector to stop contacting them, however; only one out of four people reported the collector actually stopped.

Debt collection is a $13.7 billion industry in the U.S. and the most frequent topic of complaint fielded by the CFPB. Approximately 70 million people have been contacted by a creditor attempting to collect on a debt in the past year, according to the CFPB.

The CFPB recently issued proposed rules that would strengthen consumer protections by limiting how often debt collectors can contact consumers. The rules would also require these companies to get the details right and offer an easy dispute process.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Foreclosures

Life After Bankruptcy: Getting a Credit Card Again

Posted on October 25, 2017by Admin

If you have recently filed for bankruptcy, you may be wondering about the possibility of getting a new credit card. Before you apply for a credit card, it is important to make sure you have a stable job and the ability to pay your other bills such as rent and utilities.

If bad financial decisions led to your bankruptcy, you may want to avoid getting a credit card for a while. However, if unexpected events such as a divorce or a job loss led to your money problems, you may be able to handle a credit card again.

Below are three important things to consider before filling out a credit card application:

Timing is everything. Your bankruptcy must be discharged before you can get a credit card. Lenders will deny a line of credit during a bankruptcy proceeding because the account can be included in the bankruptcy. It takes approximately three months for debts to be discharged after the initial filing of a Chapter 7 bankruptcy. A Chapter 13 bankruptcy entails a three to five-year partial repayment plan and therefore takes much longer to be fully discharged.
Weigh your options, good and bad. A recent bankruptcy will drag down your credit score for some time. As a result, you will likely receive credit card offerings from subprime lenders. Keep in mind that these credit cards typically come with higher interest rates and low limits. In addition, they typically require frequent fees that are much higher than most. A better option after a bankruptcy discharge is a secured credit card. This type of card is designed for consumers with bad or no credit. They are backed by a security you are required to put down. Secured cards have low limits and high interest rates but do not typically charge annual fees.
Monitor your credit score. If you do get a secured card, do not spend more than 30 percent of the credit limit and pay off the balance every month. If you follow these two rules, your credit score should improve in time.

Click here to read more on this story.

Debt Relief, Foreclosures, Timothy Kingcade Posts

Changes to Reverse Mortgage Rules for Retirees

Posted on October 13, 2017by Admin

Starting this month, some major changes are coming to the HECM reverse mortgage industry as the government aims to strengthen the long run projections of the program. The Home Equity Conversion Mortgage (HECM) is Federal Housing Administration’s (FHA) reverse mortgage program which enables you to withdraw some of the equity in your home.

According to HUD Secretary Ben Carson, “We have a responsibility to make changes that balance our mission with our responsibility to protect taxpayers. Furthermore, Carson noted that the changes are “needed and prudent steps to put the HECM program on a more sustainable footing so that it can remain a resource for senior borrowers.”

Here are the three major changes that have taken effect October 2017:

Upfront HECM mortgage insurance premiums will be increased for certain borrowers, but lowered for others, as compared to the current system.
The ongoing mortgage insurance premiums will be lowered, bringing down the total compounding rate cost for most borrowers. This could put rates more in line with the rates of traditional mortgages and the rates of home equity lines of credit.
Principal limit factors will be changed, which impacts the amount of home equity that will be available for homeowners to access at various ages under the HECM program.

Click here to learn more about the specifics of each of these three major changes and how each one will affect borrowers.