Timothy Kingcade Posts Archives - Page 111 of 155 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Timothy Kingcade Posts

Private Student Loans Just as Dangerous as Using a Credit Card to Pay for College

Posted on November 12, 2013by Admin

A recent analysis done by the Consumer Financial Protection Bureau’s Student Loan Ombudsman report concluded that private student loans are a “risky and high-cost” method to pay for a college education, “no better than paying for college on a credit card.” These private student loans total approximately $165 billion and account for 15 percent of the nation’s total outstanding student loan debt.

Private student loan repayment was the subject of nearly 65 percent of more than 4,300 complaints received by the Consumer Financial Protection Bureau from October 1, 2012 through September 30, 2013. Repayment concerns included fees, billing, deferment, forbearance, fraud and credit reporting.

What’s most concerning is how borrowers incurred these private student loan debts. “In 2008, a majority of private student loan borrowers took out less in federal student loans than they could have. Of these borrowers, a full quarter took out no federal student aid whatsoever … In large part, private student borrowers fell prey to a range of unsavory marketing tactics… Some lenders deliberately misled borrowers into believing that their private student loans were superior to federal loans.”

The CFPB’s Student Loan Ombudsman is a statutory office created within the Bureau to assist consumers in resolving their issues with private student loan lenders. Through this effort, the CFPB has assisted hundreds of borrowers obtain relief from their lenders. The median monetary recovery is $700; the maximum amount of relief granted thus far is $75,000.

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If you are having trouble making your student loan payments or you have recently defaulted on your federal or private student loans, contact an experienced Miami bankruptcy attorney. Although student loans are often not dischargeable in bankruptcy court, an attorney can help you eliminate other debts and obligations so you can take control of your finances and better handle your student loan debt. 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. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

Bank of America Ordered to Pay $863.6 Million Following Fraud Verdict

Posted on November 11, 2013by Admin

The U.S. government has declared that Bank of America pay $863.6 million in damages after a federal jury found it liable for fraud over defective mortgages sold by its Countrywide unit. In addition, the government also asked for penalties against Rebecca Mairone, a former midlevel executive at the bank’s Countrywide unit who the jury also found liable.

The government said these penalties were necessary and it intends “to send a clear and unambiguous message that mortgage fraud for profit will not be tolerated.” Bank of America and Mairone were each found liable for defrauding government-controlled mortgage companies Fannie Mae and Freddie Mac through the sale of fraudulent loans purchased from Countrywide in 2007 and 2008. Mairone has since joined JPMorgan Chase & Co and denied any wrongdoing.

The government said that Countrywide’s program emphasized short term gains and rewarded employees for quantity over quality, eliminating checkpoints designed to ensure the loans were sound. The verdict has been considered a major victory for the U.S. Department of Justice, which has been criticized for failing to hold banks and individuals accountable for their roles in the events leading up to the 2008 financial crisis.

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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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Advantage Rent A Car to File for Bankruptcy

Posted on November 8, 2013by Admin

Advantage Rent A Car will file for bankruptcy after Hertz terminated lease agreements that provided the company with its cars. Shares of Hertz fell as much as 17 percent after Advantage’s owners said the book value of the cars passed to them at the time of the sale was too high. Hertz terminated lease agreements on 24,000 Advantage vehicles last Saturday, saying Advantage’s owners had failed to make some payments.

Franchise Services of North America (FSNA), which also owns the U-Save and Canada’s Rent-a-Wreck brands, said it would file for Chapter 11 bankruptcy protection for Advantage as early as Tuesday. Advantage operates in 33 states, including airport locations serving 60 of the top 70 airports across the United States.

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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.

Foreclosures, Timothy Kingcade Posts

“Extreme Makeover: Home Edition” Not Always a Fairytale

Posted on November 7, 2013by Admin

A number of families that appear on the popular TV show, “Extreme Makeover: Home Edition” encounter obstacles once the cameras and crew leave town. Oftentimes, it is the struggle to afford the upkeep on their expensive new homes and the hefty monthly mortgage payments.

The first of several foreclosures for the show involved Eric Hebert. In an early 2006 episode, his family home, described as a basement with a roof over it, received a huge makeover. The new home resembled a multi-story mountain lodge. Public records show Mr. Hebert’s original mortgage was for $110,000 in September 2004. In January 2006, just before the show aired, he refinanced for $250,000. About a year later, came another refinance with Wells Fargo for $382,500. A notice of default was recorded in January 2009 and the home was foreclosed on in October.

The Okvaths received a 5,346-square-foot home with six bedrooms, a movie theater and carousel in the backyard for their home makeover. After falling upon hard times, the family could no longer afford the $3,056 monthly mortgage payment. The area has an 18-month supply of homes in that price range and the Spanish-style mansion is out of place in its modest surroundings.

Some contestants have opted for a quick fix and attempted to sell their new homes. However, the homes featured on the show are big, luxurious residences built in working-class, rural communities making the properties a tough sell.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Rapper DMX’s Latest Bankruptcy Drama

Posted on November 6, 2013by Admin

Rapper DMX, whose real name is Earl Simmons, filed for bankruptcy in July, but according to the Justice Department there have been some problems. DMX’s attorney is urging the Manhattan bankruptcy court to let the rapper exercise his right to reorganize under Chapter 11.

However, watchdog, U.S. Trustee Tracy Hope Davis, has asked the court to convert the rapper’s Chapter 11 restructuring into Chapter 7 liquidation or throw out the case entirely. This is following the rapper’s failure to appear at a meeting with his creditors and inconsistent information regarding his financial standing.

In court papers filed last week, DMX’s bankruptcy lawyer said his client “is committed to fulfilling his obligations as a debtor in possession and successfully reorganizing under Chapter 11.” This includes attending a rescheduled meeting with his creditors and turning over financial information related to the noted discrepancies. One in particular, involves a filing listing of $0 worth of clothing among his assets, while another says he spends $1,000 a month on clothing.

The rapper filed for Chapter 11 bankruptcy protection just days after his arrest on suspicion of drunk driving; listing less than $50,000 in assets and $1 million to $10 million in debt- $1.2 million being in child support obligations.

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Bankruptcy Law, Credit, Timothy Kingcade Posts

Big Bank Pays a Big Price for Creditor Harassment

Posted on November 5, 2013by Admin

Bank of America has been ordered to pay $10,000 per month for every time it continues to harass a couple to pay off a loan that was discharged in bankruptcy. Judge Robert Drain of the U.S. Bankruptcy Court in New York says, “He means to send a message by the ruling.”

Chapter 7 bankruptcy relieved Edwin and Michelle Ramos of the obligation to pay off their home loan while preserving the bank’s right to foreclose on its collateral. However, the calls and letters kept coming to the Ramoses; even after their attorney pointed out that their personal liability had been discharged in bankruptcy. According to court records, the bank ignored this fact and failed to respond to Judge Drain until 10 days after he signed an order imposing sanctions on the lender.

Following the penalty, Bank of America agreed to stop the calls and letters except for informational notices that inform the Ramoses of what they have to do keep their home.

This is not the first time Bank of America has been reprimanded for these type practices. In March, U.S. Bankruptcy Court Judge Karen Jennemann in Orlando, Fla., fined the bank $220,000 for repeated violations of court orders involving a loan-modification arrangement.

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Foreclosures, Timothy Kingcade Posts

Squatting Scheme Targets Victims of Foreclosure

Posted on November 4, 2013by Admin

Two men in Colorado Springs are accused of squatting in homes as part of a scheme targeting homeowners facing foreclosure. It is alleged that Bryan Jensen, 31, and Ethan Eaton, 34, were hoping to use adverse possession to gain ownership of homes with distressed mortgages. Under Colorado law, if someone uses a property for at least 18 years, it becomes theirs- free and clear.

According to police, Jensen and Eaton set up businesses to promote the scheme under the names, American Home Ventures LLC and Austin Home Ventures LLC. The website hopeforyourhome.com, defines their purpose as, “Establishing a plan that will turn your distressed property into a cash machine, regardless of equity” and that their company exists “to help good people out of tough financial real estate situations.”

Investigators allege the two were squatting in homes owned by people who reside out of state. They also helped several people trespass onto vacant properties in the city. Police have yet to identify those individuals. Police can confirm that Jensen and Eaton set up utilities in their names at the homes and filed adverse possession claims with the county clerk’s office.

This type of scheme is not limited to Colorado, adverse possession cases have been seen in areas across the country, including Florida, with a high rate of foreclosed homes.

Related Resources:

http://www.miamiherald.com/2013/10/30/3721164/squatting-scheme-alleged-in-colorado.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Student Loan Borrowers Face Payment Processing Pitfalls

Posted on November 1, 2013by Admin

A new report from the Consumer Financial Protection Bureau (CFPB) reveals that the companies hired by lenders to collect payment for private student loans are not always acting in the borrowers’ best interest. In fact, sometimes their actions increase the total cost of higher education. The most common complaint deals with the problem encountered when borrowers try to pay off their loans early or pay them off in a certain order.

Oftentimes, it makes the most sense to pay off the student loan with the highest interest rate first, but the CFPB report found that loan servicers do not always do that. Instead, they frequently divide the payment or over-payment and apply it to all of the person’s outstanding loans. According to the report, these “payment processing pitfalls” can lead to increased costs, extended periods of repayment and harm the borrower’s credit profile.

The CFPB also found problems for borrowers who had multiple loans with the same servicer and were unable to make their monthly payment in full. They were oftentimes told by the loan servicer to pay as much as they could. But instead of putting all of the money toward the highest-rate loans, the loan servicer applied it evenly to all of the loans. This practice maximizes late fees and can intensify the negative impact of a single late payment to the borrower’s credit profile.

Another problem encountered by borrowers was when their loans were transferred to another service provider. These complaints included lost paperwork, processing errors that resulted in late fees and an interruption in billing statements. More than 3,800 complaints about private student loans were received between October 1, 2013 and September 30, 2013. 49 percent of these complaints were with Sallie Mae.

Bankruptcy Law, Credit, Timothy Kingcade Posts, Uncategorized

Student Loan Default in the U.S. and Steps the Govt. is taking to address the Problem

Posted on October 31, 2013by Admin

With student loan debt approaching $1.2 trillion it has become a threat to our children’s futures. Senator Elizabeth Warren, D-Mass., a leading consumer activist and advocate for student loan reform in Congress recently co-sponsored a bill, “Keep Student Loans Affordable Act of 2013.” The new bill would have rolled back interest rates and frozen them for a year at 3.4 percent. During that year, Warren and her colleagues planned to reform the student loan system to eliminate profits, provide better consumer protection and address “the college affordability problem,” which, she says, forces families into debt in the first place.

The bill unfortunately failed, but Warren is continuing to press for the following changes:

– Eliminating government profits from the student loan program.

– Reducing the burden of student debt on existing borrowers by letting them refinance their loans during this period of historically low interest rates.

– Restoring basic consumer protections, such as bankruptcy relief. Under current law, student loans cannot be dismissed when someone files for bankruptcy protection.

President Obama gave his support to Warren’s key issue saying that, “government shouldn’t see student loans as a way to make money; it should be a way to help students.” The urgency from Warren and other advocates is that students and their parents are increasingly turning to loans to pay for higher education, as college costs have become out of reach for most families.

Nationally, about 11 million students take out college loans each year. One reason loan numbers are spiking is that college costs have soared since 1982-83, by 257 percent at four-year state colleges and universities and by 166 percent at four-year private colleges and universities, according to the College Board. At the same time, state support of public colleges and universities has slipped. State funding for public universities dropped by 23 percent between 2007 and 2012, Warren said.

Defaulting on student loans can have a lasting impact on your financial future. The Federal Student Aid website lists the following consequences of defaulting on your student loans: The outstanding amount of the loan-both principal and interest- becomes due immediately; the borrower loses eligibility for any additional student aid or forgiveness program; you are reported to credit bureaus; the overall debt will increase as interest keeps building, which can include late fees, collection fees and court fees. The following consequences can also result: Wages may be garnished; tax refunds may be withheld; pay can be withheld and the lender may even file a lawsuit against you.

The debt that students are taking out to finance their lives and futures is crushing! Student loans are the toughest because they start so early, when students are trying to launch their careers and gain their financial footing. This is also the time young people are the most vulnerable and have the fewest resources available to them.

Credit, Foreclosures, Timothy Kingcade Posts

New Finance System Provides Hispanics the Key to Homeownership

Posted on October 30, 2013by Admin

The goal of owning a home is deeply rooted in the Hispanic culture. It’s considered a symbol of success and an important element when providing for one’s family. The housing crisis hit Hispanic families particularly hard. The Hispanic homeownership rate now stands at 45.9 percent, well below the national rate of 65 percent. Thousands of Hispanic homeowners are still “underwater” on their homes, while even more lost their homes to foreclosure.

New Directions for National Policy, the Bipartisan Policy Center Housing Commission has put forth a comprehensive plan for an entirely new system of housing finance. Under the plan, the private sector will play a far greater role in bearing mortgage-credit risk.

A key goal of the plan is to preserve the 30-year fixed-rate mortgage, which has allowed millions of low- and moderate-income families to achieve their dreams of homeownership. Stretching out the mortgage payments over 30 years helps keep monthly payments low and provides certainty to borrowers by protecting them against interest rate volatility over the life of the loan. Other elements of the plan include promoting the widespread availability of housing counseling for first-time homebuyers and adopting sound underwriting standards.

As the housing market continues to recover, the National Association of Hispanic Real Estate Professionals (NAHREP), reports why Hispanics will be a dominant force in the housing market for years to come- First, the Hispanic community is growing dramatically, with some experts predicting the Hispanic share of the overall population climbing to 29 percent by the year 2050. Second, the purchasing power of Hispanics is on the rise and exceeded $1 trillion in 2012. Third, Hispanic educational levels are increasing, with Hispanics now the largest minority group on our nation’s college campuses.

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