Timothy Kingcade Posts

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Florida Condominium Law after Bankruptcy

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Florida condominium owners may find themselves in a situation where they must file for bankruptcy. Oftentimes, owners want to know what will happen regarding their Condominium Owner Association (COA) assessments or fees, especially if they have fallen behind on payments. There are some important laws pertaining to these dues that every condominium owner should know.

If you own a condominium and must file for bankruptcy, condominium assessment liens can be removed if you are unable to pay them. According to the U.S. Bankruptcy Court, this means that the condominium fees would not need to be paid if the first mortgage amount surpasses the value of your property.

In the past, some Condominium Associations have argued against this, stating that its statutory lien should receive priority, because any first mortgagee gaining title from foreclosure is only required to pay either 1% of the original mortgage debt or a year’s worth assessments (the lesser of the two).

Since then, the court has rejected these arguments, citing Florida Statues, Section 718.116(1)9b. The law states it: “does not give the Association any lien rights (against a foreclosing lender for outstanding delinquencies). It merely gives it the right to assert liability for past-due assessments against the mortgage holder if the mortgage holder acquired title through foreclosure.”

While typically most debts listed in a bankruptcy petition, including condominium assessments and fees are dischargeable, there are certain types of debt that are not dischargeable. According to Section 523 of the 2005 Bankruptcy Reform Act, post-bankruptcy condominium or cooperative owner’s association fees are not dischargeable. This means that condominium owners would owe any assessments or fees owed after their bankruptcy petition is filed.

Condominium owners face “post-petition debt,” which is subject to collection. If you fail to pay your assessments that have accumulated after your bankruptcy filing, your COA can request the court to lift the automatic stay, allowing them to collect that post-petition debt.

If you have any questions on this topic or 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.

Source: http://rpmshomes.com/happens-condo-owner-declares-bankruptcy/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Post Bankruptcy Creditor Violations a Growing Problem

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If you file for bankruptcy and your debts are discharged, it means your debts have been legally forgiven and you no longer owe that amount. Unfortunately, many creditors fail to acknowledge this and may still attempt to collect the debt, even after a discharge. Occurrences of consumers experiencing debt collection attempts like these are a growing problem.

Sometimes debts that are forgiven by bankruptcy courts may be sold to a junk debt buyer, spawning continued harassment for consumers. In many cases, consumers wind up paying off debts they no longer owe. If a lender fails to revise their records on your credit report, this could pose a serious problem. One consumer experienced this with Capital One when he tried to secure a mortgage on a new home. Capital One demanded he pay the balance in order to proceed with the home purchase.

The law clearly defines your rights regarding debts that have been discharged in bankruptcy court. It is crucial that consumers are aware of these rights. You have the right to file a motion with the court and report the action, if a creditor attempts collection on a discharged debt. A discharge means that a permanent statutory injunction has been set in place, stopping creditors from collecting the discharged debt. Creditors who violate this injunction can face hefty fines.

Even though it is illegal for creditors to pursue discharged debts, the trend continues. In an effort to stop this and hold creditors accountable, the FTC has begun working on new regulations designed to stop creditors from going after discharged debts in court.

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.

Sources http://www.creditinfocenter.com/debt/dischargeddebtsreturn.shtml

Foreclosures, Timothy Kingcade Posts

Justice Achieved for Victims of Florida Foreclosure Relief Scam

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Recently, a federal judge granted final judgment against a local Florida law firm and its associates for operating a massive foreclosure relief scam. The Consumer Financial Protection Bureau (CFPB) and the state of Florida claimed that the firm and its affiliates had fraudulently charged fees from approximately 2,000 clients who were seeking foreclosure relief. The firm was sued by CFPB and the state of Florida for violating both Florida law and a federal rule concerning mortgage assistance.

$11.7 million of unlawful advance fees were collected by the law group and its affiliates, all of which they will be liable for. The firm must also pay a $10 million civil money penalty that has been issued for the CFPB, as well as a $6 million penalty to Florida, totaling  $27.7 million for their involvement in the scam. However, the majority of these penalties will be uncollectable. Last year both the CFPB and Florida froze the companies’ assets and the firm’s remaining assets, which are just over half a million dollars. CFPB Director Richard Cordray stated, “We are working to protect consumers from illegal predatory practices by holding bad actors accountable for their actions.”

The firm managed to lure clients in with deceptive marketing tools and false expectations for loan modifications and protection from foreclosure. Unsuspecting homeowners seeking to adjust their loans and keep their homes were charged an upfront fee of $6,000. A monthly payment of $495 was also collected from the homeowners. According to court documents, the firm violated federal rules by discouraging clients from communicating directly with their lenders or servicers, claiming they would handle all communications for the homeowners.

The CFPB explained, “Companies cannot legally accept payment for helping to obtain a mortgage modification for a consumer before the consumer has a modification agreement in place with their lender.” At this time, CFPB reports that the companies have been permanently disbanded and are no longer able to do business of any sort. The law firm’s associate has also relinquished his license to practice law in the state of Florida.

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.

Sources: http://www.americanbanker.com/news/law-regulation/cfpb-florida-win-case-over-alleged-foreclosure-relief-scam-1074596-1.html
http://www.housingwire.com/articles/34036-cfpb-secures-277-million-judgment-against-foreclosure-relief-scammers

Bankruptcy Law, Student Loans, Timothy Kingcade Posts

How Long can Student Loans Harm Your Credit?

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Many borrowers are concerned with the repercussions of missing student loan payments. Oftentimes, it is hard to say how long it may affect one’s credit because each loan program tends to operate differently from the next. Those with past due private student loans can expect the debt to appear as a typical negative mark on their credit score, eventually clearing from the credit report after seven years. The majority of federal student loans will also drop off after seven years as well.

The Perkins loan is a type of student loan—the only of its kind—that remains on your credit report until is completely paid off, regardless of the number of years. The Higher Education Act’s provision allows the Perkins loan to affect your credit differently than other types of loans. Colleges distribute the Perkins loan on an “as-needed” basis and the interest is deferred while the student is actively attending school.

It is required that all federal loans are reported to the three major credit reporting agencies but often this information is given voluntarily. The Department of Education, Guaranty agencies, federal student lenders and the Department of Education are also required to provide information pertaining to extended loans, remaining balances, and loan delinquency dates if the loan is past due or in default. While defaults and delinquencies are reported for seven years, this can happen multiple times, resulting in new negative marks that remain for seven years after each occurrence. Lenders are not required to report loans that have been paid on time, therefore positive payment histories will not likely be reported regularly.

There are solutions to help you protect your credit moving forward. If you are behind on your student loan payments, initiate a catch up plan. This can include repayment options such as an income-based repayment plan. Continuing to make on-time payments will reflect positively on your credit score and protect more damaging marks from arising due to missed payments. Often this results in the removal of default notations on your credit report. Certain lenders may cease reporting late payments if this is done.

For borrowers with multiple student loans, consolidation is a smart idea for simplified repayments. Consolidation does not alter the original late payment date of the loans, but consistent payments will help generate positive activity on your report, which will in time make the negative information have less of an impact. Additional ways to rebuild your credit report with positive information is to make sure you pay your credit cards on time and keep the balance low in relation to the credit limit, preferably less than 30%.

Every year you are entitled to a free credit report, directly from each of the three major credit reporting agencies. Make sure the information on your report matches your activity. If it does not, you can dispute it to have it possibly removed.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you 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.

Sources:
http://www.usatoday.com/story/money/personalfinance/2015/04/05/credit-dotcom-student-loan-credit/70729620/

Bankruptcy Law, Timothy Kingcade Posts

Housing Debt is Affecting More Older Americans

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Many older Americans face financial threats such as falling for money scams, running out of savings and not having adequate retirement plans in place. Since the housing market collapse and the worst recession American has seen since the 1930’s, millions of retirees are now struggling to make their mortgage payments.

Over the last twenty years, retirements have dwindled for the baby boom generation, as employers get rid of traditional pensions. American seniors are dealing with devastating financial consequences after using their retirement funds to cover housing costs. As a result, many must return to work again or seek help from charities, government programs or even their children.

According to the Consumer Financial Protection Bureau’s Office for Older Americans, 30% of homeowners, ages 65 and older paid a mortgage in 2013, approximately 6.5 million seniors. The median mortgage amount for seniors has also doubled from $43,400 to $88,000, since 2001. A significant amount of older Americans were left with mortgages exceeding their home’s value, after the housing market crisis. Hundreds of thousands of these seniors have even lost their homes to foreclosure. AARP found in a 2012 study that that between 2007 and 2011, 1.5 million Americans over 50 lost their homes.

One struggling retiree cannot manage the financial weight left behind by her late husband. “I’ll live on the streets, I guess,” she says, considering homelessness at age 74.

Reverse mortgages is another problem retirement age Americans have run into. These loans against the equity of their property, supplied cash to the homeowners, but once they passed on or sold the house, the money was due. Many seniors faced problems when their spouse signed the reverse mortgage, to qualify for a larger loan, only to pass on shortly thereafter. Often lenders then demanded full repayment, with foreclosure as the unfortunate alternative.

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.

Sources:
http://www.foxnews.com/us/2015/06/02/more-older-americans-are-buried-by-housing-debt/
http://www.usatoday.com/story/money/2015/06/02/older-americans-housing-debt-retirement/28358093/

Bankruptcy Law, Timothy Kingcade Posts

Second Mortgages in Bankruptcy Will Not be Canceled for Struggling Homeowners

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The U.S. Supreme court ruled on Monday that struggling homeowners will not be able to get rid of second mortgages by filing for bankruptcy. The decision was unanimous with all 9 justices agreeing that filing for a Chapter 7 Bankruptcy does not enable homeowners to cancel a second mortgage while their homes are hardly worth the value of their first mortgage.

In a case between Bank of America and two Florida homeowners who attempted to cancel their second mortgages, the bank quickly fought back to keep the second mortgage liens. The homeowners said that their second mortgages were pointless because they had to first pay off their initial mortgages. Lenders argued that the debt could be paid in the future, once property values rose again.

Regarding the court’s decision, Justice Clarence Thomas said that they considered the constantly shifting value of real estate. “Sometimes a dollar’s difference will have a significant impact on bankruptcy proceedings,” he stated. According to CoreLogic’s report, by the end of 2014’s second quarter, approximately 2.1 million underwater homeowners held second liens.

A long running dispute between homeowners and mortgage lenders circled around the 11th U.S. Circuit Court of Appeals’ decision to support bankruptcy court in stripping Bank of America’s liens. For bankruptcy judges who have disagreed on this dispute, Monday’s ruling offers clarification.

Some consumer experts remain positive that bankruptcy will help struggling homeowners repair their property-related financial troubles. The most popular type of consumer bankruptcy is Chapter 7, which allows a court-appointed trustee to repay their debts and cancel the remaining, through selling their property. Over 700,000 cases were filed for Chapter 7 Bankruptcy last year.

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.

Source: http://www.wsj.com/article_email/supreme-court-underwater-homeowners-cant-void-second-mortgages-in-bankruptcy-1433173699-lMyQjAxMTA1MDA0MTIwMjEyWj 

Bankruptcy Law, Credit, Timothy Kingcade Posts

Kingcade & Garcia, P.A. Receives Prestigious 2015 Florida Excellence Award

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HONHW30The Miami-based law firm of Kingcade & Garcia, P.A. has recently been selected for the 2015 Florida Excellence Award by the US Commerce & Trade Research Institute (USCTRI).  This prestigious honor is awarded to companies that have achieved demonstrable success in their local business environment and industry category.

“We are extremely honored as a firm to have received this award,” says founding partner, Timothy S. Kingcade.  “We take great pride in upholding business ethics and company values at our firm.  It is the driving force behind our firm’s corporate culture and success.”

Kingcade & Garcia has been recognized as having enhanced the commitment and contribution of small businesses through service to their customers and the community.  Small businesses of this caliber enhance the consumer driven environment that Florida is renowned for.  This recognition by USCTRI marks a significant achievement as an emerging leader and sets benchmarks that the industry should follow.

Selection is determined through industry research, business surveys and various sources of information gathered by the USCTRI.  The research is part of an exhaustive process that encapsulates a year-long immersion in the business climate of Florida.   USCTRI is a leading authority on researching, evaluating and recognizing companies across a wide spectrum of industries that meet its stringent standards of excellence.

Timothy S. Kingcade founded the law firm of Kingcade & Garcia, P.A., in 1996. Today, he and his firm handle more than one thousand bankruptcy filings each year. As Managing Shareholder of Kingcade & Garcia, P.A., Timothy and his firm represent clients throughout the State of Florida in Chapter 7 bankruptcy, foreclosure defense, personal injury and PIP claims. To compliment Attorney Kingcade’s extensive legal experience, he is also a certified public accountant (CPA), which provides him with a unique understanding of how to handle tax-motivated bankruptcy cases against the IRS.

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Miami-based Kingcade & Garcia, P.A. was established by managing partner and attorney, Timothy S. Kingcade in 1996. The firm represents clients throughout the State of Florida in Chapter 7 bankruptcy, foreclosure defense, personal injury and PIP claims. The firm is committed to providing personalized service to each and every client. The office environment and the service provided are centered on a culture of superior client care. Additionally, all attorneys and staff members at the firm are bilingual speaking Spanish.

Bankruptcy Law, Timothy Kingcade Posts

Credit Report Medical Debt: The Serious Consequences

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NY State Attorney General, Eric Schneiderman’s urgings have caused the nation’s 3 major credit reporting agencies to announce changes in the ways that they score medical debt on credit reports. Equifax, Experian and Transunion have agreed to no longer treat medical debt as just another negative mark on people’s credit scores. They will also refrain from adding delinquent medical bills to the report until they have been outstanding beyond 180 days.

Last August, Fair Isaac, the company that generates the FICO score, announced the FICO® Score 9, which is a newer way to review consumer collection information. They described it as offering “sophisticated treatment of differentiating medical from non-medical collection agency accounts.” As result, medical collections will now have a lesser impact on the score, based on the credit risk. The company also said that for consumers with medical bills as their only negative mark, the median FICO score will go up 25 points. Since the FICO score is accessed by all three credit reporting agencies, this is a significant move up for consumers with medical collections.

However, there is some fine print associated with these hopeful changes. They aren’t expected to go into effect for months and once they do, the consumer’s score will only rise the 25 points if the only serious late payment is for medical debt. Additionally, consumer scores won’t be reduced by FICO for late bill payments, even if those bills have been paid off.

Another concern is that the changes will only address newly reported debt, not existing medical debt. Also, consumers using credit cards to pay off medical debt would lose the FICO protection if they were then unable to pay off the credit cards. Many wonder why the credit agencies don’t abolish the debt altogether.

According to a December report released by the Consumer Financial Protection Bureau (CFPB), more than 43 million Americans have medical debt on their credit reports. Of these individuals, many will be forced to declare bankruptcy. According to data gathered from the U.S. Census and the Centers for Disease Control, 60% of all bankruptcies can be mainly attributed to medical debt. With these harrowing figures, consumers wait for positive news and more positive changes to finally take place.

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.

Source: http://www.huffingtonpost.com/jerry-ashton/the-deadly-aftershocks-of_b_7422362.html

Foreclosures, Timothy Kingcade Posts

Ways to Avoid Foreclosure Rescue Scams

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A growing problem today is foreclosure rescue and mortgage modification scams. These scams can cost you thousands of dollars and even the loss of your home. The scams often hook unsuspecting victims with false guarantees to lower mortgage rates or “save” their home, for a fee. They falsely claim to have direct contact with your mortgage servicers and promise to work on your behalf, when in reality they only intend to take your money and run.

The following tips will help you to be better informed regarding legitimate foreclosure rescue and mortgage modification options.

• The only ones with discretion to grant a loan modification is your mortgage servicer. A third party cannot guarantee or pre-approve your Home Affordable Modification Program (HAMP) mortgage modification application.

• In most cases, charging advance fees for a mortgage modification is illegal. If anyone is asking to charge you in advance for mortgage modification services, beware.

• The likelihood that you will receive a mortgage modification is not improved or guaranteed because you have paid a third party to assist with your application.

• If a third party is boasting of continued success rates, offers money-back guarantees, or they claim to be experts in HAMP, this is a red flag.

• Check and confirm any affiliations or connections an individual or company may claim to have with HAMP or the U.S. government. Even if you see a seal or logo in their correspondence or online, check it out.

• Never sign over the deed for your property to any organization or individual unless you are dealing directly with your mortgage company in an effort to forgive your debt.

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.

Source: http://www.makinghomeaffordable.gov/learning-center/Pages/beware.aspx

Foreclosures, Timothy Kingcade Posts

Faster Foreclosures Sought by State Regulator

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“Faster Foreclosures,” also known as non-judicial foreclosures are causing serious issues for financially struggling homeowners.  Many lawmakers are arguing for faster foreclosures because the costs are cheaper and the cases are quickly pushed through the court system. Faster foreclosures are not only a negative thing for homeowners; they also take away the homeowner’s rights. While Florida currently requires foreclosures to go through the courts, officials are fighting to make faster foreclosures a mainstream option.

The superintendent of the Department of Financial Services, Benjamin Lawsky, spoke about the issue during a Mortgage Bankers Association conference in New York City. Lawsky called for the state legislature to begin utilizing measures that would limit the timeline for foreclosure proceedings. Changes would include reorganizing foreclosures on vacant or abandoned homes as well as certain commercial properties. More than a dozen states in the nation process judicial foreclosures that go through the court system, including Florida.

In 2015’s first quarter, the national average of homes in any stage of foreclosure was 2.2%, according to a recent report by the Mortgage Bankers Association. Florida’s rate of 4.82% was the nation’s third-highest percentage of home loans in the foreclosure process. For homeowners who are behind on their payments, the judicial process is less pressing for them because the courts are involved every step of the way, which takes far more time.

Officials complain that judges’ schedules, hearings, required paperwork and backlogged courts make the process unnecessarily lengthy. The president of the Mortgage Bankers Association, David Stevens, who lobbies on behalf of lenders said, “Everybody is prepared to protect the consumer, but you don’t want to put unusual obstructions in place for homes that should be foreclosed upon.” Also, longer foreclosure processes can lead to more expenses for mortgage servicers, which could affect surrounding property values if the home is deserted and falls to poor condition.

In Florida, the process can take as long as three years. These longer timelines offer more options to homeowners. Those facing foreclosure will have far more time to try to refinance their mortgage, negotiate an alternative or even reside in the home without payments until the foreclosure is completed. Faster foreclosures take these options away and make the situation that much more difficult for the struggling homeowner.

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.

Source: http://www.wsj.com/articles/new-york-regulator-seeks-faster-foreclosures-1432074791