Foreclosures, Timothy Kingcade Posts

Banks sell off foreclosure remnants, helping eliminate housing ‘zombies’

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Zombie foreclosures remain a big problem in certain parts of the country. Banks are taking action on those vacant, foreclosed homes and selling them at a fast turnover.  In fact, vacant homes in the foreclosure process are expected to drop 9 percent in the third quarter from a year ago, but vacant bank-owned properties are expected to jump 67 percent during the period, according to ATTOM Data Solutions.

Currently, there are just over 46,600 vacant bank-owned properties (known as REOs) littering neighborhoods nationally. More low-priced homes would seem to be a bonus for a housing market plagued with a short supply, but that is not the case in this situation. The vast majority of these zombie foreclosures are in the least desirable markets for investors. New York, Philadelphia and Chicago have the highest number of vacant foreclosures, but they are in some of the most impoverished areas. The homes are also in terrible disrepair.

That means the homes that are left, the zombie foreclosures, require thousands of dollars of work to make them either desirable to renters or buyers. Government-backed mortgage entities like Fannie Mae and the FHA have strict lending requirements when it comes to distressed properties.

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 website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Foreclosures

Bank of America Accused of Racial Discrimination as Neglect of Foreclosures Worsens

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The National Fair Housing Alliance (NFHA) and nine local fair housing organizations filed an amended discrimination complaint against Bank of America (BoA) this week.  The complaint alleges illegal discrimination by BoA in African American and Latino neighborhoods in six additional cities.  The cities include: Columbus, OH; Gary, IN; Minneapolis, MN; Newark, NJ; Tampa, FL; and neighborhoods in suburban Detroit.

“Bank of America’s deliberate neglect of its foreclosures in communities of color creates financial concerns as well as health and safety risks for people living near poorly-maintained foreclosed homes,” said Shanna L. Smith, President and CEO of NFHA. “Too many of these foreclosures have overgrown weeds, unsecured doors or windows, and debris left in the yard, creating perfect breeding grounds for rats, mice, snakes, and mosquitoes.  Bank of America is exacerbating the risk of spreading the Zika virus in south Florida by allowing standing water to accumulate in pool covers, tires, and debris around these foreclosures.”

This new evidence formed the basis of the amended complaint.  The complaint is now comprised of evidence from 1,267 BoA properties in 30 metropolitan areas and 201 cities throughout the United States.

Evidence obtained during the investigation reveals continued failure by Bank of America to perform simple and routine maintenance on its foreclosures in African American and Latino neighborhoods.  This includes the failure to lock or secure doors and windows, remove trash and debris left by former owners, mow and edge lawns, trim shrubs, and cut back invasive plants.

On the contrary, the investigation revealed BoA keeps its foreclosures in white neighborhoods in good condition.  Lawns are mowed and edged regularly, and BoA properly disposes of the belongings left behind by former owners. BoA is paid to perform these routine duties in all neighborhoods for all of its foreclosures.

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 website at www.miamibankruptcy.com.

 

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Wells Fargo and U.S. Trustee Program Reach Mortgage Settlement

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The U.S. Trustee Program recently announced that it has reached an agreement with Wells Fargo Bank requiring the bank to pay nearly $3.5 million in remediation to 8,000 homeowners in Chapter 13 bankruptcy.

The settlement arose in the Chapter 13 case of Ernestine C.J. Green, filed Nov. 30, 2011. Chapter 13 bankruptcy allows individuals receiving regular income to obtain debt relief while keeping their home. To do so, the debtor must propose a plan that uses future income to repay all or a portion of his or her debts over a three to five year period.

A debtor with a home mortgage can continue to pay the mortgage, or sometimes the Chapter 13 trustee appointed in the case pays the mortgage with income provided by the debtor’s earnings. Mortgagees or mortgage servicers are required under Bankruptcy Rule 3002.1 to file and serve notices when the mortgage payments change during the course of the Chapter 13 case.

The previous settlement in November 2015 contemplated that Wells Fargo would engage an independent reviewer to identify potential systemic issues in the bank’s operations.

“That compliance monitoring led to the discovery of a deficiency in Wells Fargo’s processes and procedures relating to the certificates of service filed with the PCNs” between 2011 and 2016, Jane Limprecht of the USTP told Bloomberg BNA. The deficiency caused “thousands of homeowners” to receive their change notices with fewer than the 21 days notice required before payment changes could take effect, she said.

The new settlement will provide refunds and credits to affected consumers, and Wells Fargo is required to change its procedures to prevent the problem from happening, again.

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, 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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Bankruptcy Filings Increase in August Breaking the Trend

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Nationwide bankruptcy filings were a little higher in August 2016 compared to a year earlier, breaking an ongoing trend of decline.  Bankruptcy filings totaled 68,495 in August, which was an increase from July’s total of 61,340, and was approximately 1.1 percent higher than August 2015’s total of 67,777 (an increase of 718).

Year-to-date, there have been 528,397 bankruptcy filings nationwide for the first eight months of 2016 (about 66,049 per month), down from 2015’s year-to-date total through the end of August of 562,579 (about 70,322 per month), according to August 2016 AACER bankruptcy data reported by Epiq Systems.

August’s total of 68,495 bankruptcy filings was just over half of the peak total for the month of August recorded in 2010 of 135,771. The state with the highest cumulative filings for the first eight months of 2016 was California with 49,564. Illinois was second in year-to-date filings with 36,371. The next three states with the most cumulative filings were Georgia (30,751), Florida (30,640), and Ohio (24,986).

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, 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

From a $150 HOA fee to Foreclosure

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One missed HOA payment could cost a Hillsborough family their home. The family is taking on the Rivercrest Community Association, who just sold their $300,000 home at auction.  The family claims they had no warning.  Now the fight to save their home could very well leave them homeless.

The family has called their Rivercrest neighborhood home since 2005, when they bought if for around $270,000. The HOA put a foreclosure lien on the house and recently sold it at auction for $19,000. The family’s cut: $14,000.

The family said they had been paying their annual dues, but say they did not get a notice that the HOA was missing a 2009 payment for four years.  In that time, $150 turned into $750 then $3,000 in fees.  They agreed to a payment plan with HOA lawyers.  The HOA’s law firm, Bush Ross landed in a class-action suit accused of violating the Fair Debt Collection Practices Act.

The family received $300 from the settlement and thought they no longer owed the past dues, so they stopped paying.  They were scheduled to make a plea to a Hillsborough County judge on August 31. The Clerk’s Office told the media that court documents from April gave the family a month to pay their then-$4,300 balance or the home would be auctioned.

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 website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Bankruptcy Basics and When Filing is the Right Answer

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Filing for bankruptcy can be a scary predicament.  But we all know financial misfortune can affect any one of us, at any time.  Whether it is a difficult divorce, an unexpected health crisis or an extended period of unemployment- bankruptcy can become less intimidating when you know how it works and what to expect.

So how do you know when it is the right time to file for bankruptcy?  Here are a few questions to help you assess whether bankruptcy is a viable option.

  • Are you only making minimum payments on your credit cards?
  • Are debt collectors calling you?
  • Does the thought of organizing your finances cause you to have fear and anxiety?
  • Do you use credit cards to pay for necessities?
  • Are you considering consolidating your debts?
  • Are you unsure about the amount you actually owe?

If you answered yes to two or more of the questions above, it’s time to take a closer look at your financial situation. To determine where you are financially, take an inventory of all your liquid assets. Do not forget to include retirement funds, stocks, bonds, real estate, vehicles, college savings accounts, and other non-bank account funds. Calculate a rough estimate for each. Remember, virtually all retirement accounts are exempt from creditors, meaning you get to keep them if you file for Chapter 7 bankruptcy.

Then, collect and add up your bills and credit statements. If the value of your assets is less than the amount of debt you owe, declaring bankruptcy may be one way to get out from under your debt and get a fresh start.

There are many reasons people file for Chapter 7 bankruptcy. Some common reasons for filing for Chapter 7 are unemployment, large medical bills, overextended credit, and marital problems. Chapter 7 is sometimes referred to as a “straight bankruptcy.” Your assets are liquidated to pay off as much of your debt as possible. The cash from your assets is then distributed to your creditors.  In approximately four months, you will receive a notice of discharge. For many, Chapter 7 offers a quick, financial fresh start. Many filers quickly rebuild their credit scores and have gone onto purchase homes.

For people who have property they want to hold on to, filing a Chapter 13 bankruptcy may be a better option. This type of bankruptcy is oftentimes referred to as a “reorganization bankruptcy.” Chapter 13 allows people to pay off their debts over a period of three to five years. For individuals who have consistent and predictable annual income, Chapter 13 offers a grace period. Any debts remaining at the end of the grace period are discharged. Once the bankruptcy is approved by the court, creditors must stop contacting the debtor. Individuals can then continue working and paying off their debts, while still keep their property and possessions.

If you are considering filing for bankruptcy, begin with these steps:

  • Gather all necessary documents. This will document your income, your assets, and all of your debts. Download a copy of your credit report for free to make sure you do not leave anything out. Put all of the relevant paperwork — statements from all of your creditors, deeds and titles to property and vehicles, pay stubs, copies of tax returns — into a folder.
  • Find an attorney who is an expert in bankruptcy. If you have an attorney you have used before, ask him or her for a referral to a bankruptcy specialist. Do your research online and in person, do not be sold simply by an advertisement. Look at a firm’s testimonials, past experiences with clients and the number of bankruptcy cases they have filed.  With a good lawyer and the right information, filing for bankruptcy can give you the financial footing you need to get a fresh start.

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, 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.

Related Resources:

http://www.fool.com/personal-finance/credit/2007/08/31/dont-be-afraid-of-bankruptcy.aspx

https://www.legalzoom.com/articles/bankruptcy-basics-when-should-you-throw-in-the-towel

Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida Court Upholds City’s Rights to Place Liens on Zombie Foreclosure Homes

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A state appeals court recently ruled that liens placed on foreclosed homes cannot be discharged when the home goes through a judicial sale.  The decision comes from the Fourth District Court of Appeal of the State of Florida, which upheld a lower court’s ruling that liens placed on abandoned properties by Florida cities for code violations cannot be terminated once the home is sold through the judicial process.

The decision is meaningful to Florida cities because the state currently has the third highest total of zombie foreclosures, which are homes that have been foreclosed on and abandoned by the homeowner but not yet sold.

Florida has 2,467 zombie foreclosures as of the second quarter of this year, ranking behind New Jersey, which has 4,003 zombie homes, and New York, which has 3,352 zombie homes, according to data from RealtyTrac.

The court’s full decision can be read here.

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.

Related Resources:

http://www.housingwire.com/articles/37891-florida-court-upholds-citys-rights-to-place-liens-on-zombie-homes

 

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

The collapse of ITT Tech gives former students a chance to wipe out their student loan debt

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Students who graduated or dropped out of ITT Technical Institute may be the biggest winners in the federal government’s aggressive actions against the for-profit school.  The Education Department’s sanctions on the Carmel-based ITT Educational Services Inc. allow past students to take advantage of the “defense to repayment” rule that can wipe out their student loans.

Federal law gives the Education Department broad discretion to forgive student loans for borrowers who claim they were defrauded or that their college violated state laws. The government recently made the case that ITT has done just that and is inviting former students to request what could amount to hundreds of millions of dollars in loan forgiveness.

The “defense to repayment” rule applies to all former students with federal loans, but does not cover private loans.

Another piece of good news- The Education Department is simplifying the claim process for borrowers. The defense to repayment rule falls under the U.S. Higher Education Act. It has existed for years, but received little attention until recently.

The Education Department has already forgiven more than $4.2 million in loans from more than 2,000 Corinthian College students who claim they were defrauded by the for-profit chain. Students at other for-profit colleges, such as Brown Mackie College, which is closing most of its campuses, will likely have a strong case as well due to the precedent set by Corinthian.

ITT has been ordered to begin working with other colleges to facilitate transfers for students. Anyone already enrolled in ITT can continue to access federal loans if they want to finish their program. If ITT closes, the Education Department has said it will forgive current students’ loans.

Here are some ways you can submit a claim:

Go online: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/borrower-defense

Email your claim: FSAOperations@ed.gov

Mail your claim: U.S. Department of Education, PO Box 194407, San Francisco, CA 94119

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 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.

Related Resources: http://www.indystar.com/story/money/2016/08/26/itt-techs-collapse-could-help-former-students-wipe-out-their-loans/89419812/

Debt Relief, Foreclosures, Timothy Kingcade Posts

FHA’s New Guidelines Help Struggling Homeowners Remain in their Homes

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New procedures put in place by the Federal Housing Administration (FHA) will help strengthen the process mortgage services currently use and help struggling families stay in their homes and avoid foreclosure.

The updated procedures will streamline the process servicers use to engage borrowers, specifically when evaluating them for the FHA-Home Affordable Modification Program (FHA-HAMP).  These changes will reduce the number of steps that a servicer and borrower must take to resolve a delinquency and enter into a loss mitigation home retention product.  In addition, FHA is removing certain obstacles that will allow servicers greater flexibility for evaluating an unemployed borrower for a special forbearance agreement.

Here is what homeowners need to know about the new provisions. Specifically, the FHA will:

  • Require servicers to convert successful 3-month trial modifications into permanent modifications within 60 days instead of the average four-to-six months;
  • Allow borrowers with three missed mortgage payments to qualify for a partial claim to bring their payments current versus the previous requirement for a minimum of four missed payments;
  • End the traditional stand-alone Loan Modification option so struggling borrowers can access the FHA-HAMP option, to receive payment relief quicker;
  • Eliminate the required 12-month term for FHA’s special forbearance option.  This will allow servicers to offer this option to more unemployed households.

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.

Related Resources:

www.fhfa.gov

https://rismedia.com/2016/08/28/fha-streamlines-process-to-help-delinquent-homeowners-stay-in-homes/

 

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

Credit Card Use Increasing Among Consumers with Low Credit Scores

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According to the latest quarterly report on household debt, credit cards are making a comeback in a big way.  In the second quarter, total household debt increased by $35 billion to $12.3 trillion. The two driving factors: auto loans and credit cards.

While auto loans have been on a steady incline for the past six years, rising credit-card balances are a new development. After the 2007 Great Recession, households cut back on credit-card use until 2014. This was also in part to financial institutions strengthening credit requirements for risky borrowers.

Since that time, card balances have risen by about $70 billion. From 2008 to 2013, total household debts dropped by more than $1.5 trillion. However, first student loan and auto loan balances began to rise, and then mortgages and finally credit cards.

The report reveals that credit cards are returning among individuals with low credit or subprime credit scores below 660. Among people with credit scores between 620 and 660, the share that had a credit card increased to 58.8% in 2015 from a low of 54.3% in 2013. Among those with scores below 620, the number of people with a credit card increased to 50% from a low of 45.6% two years ago. Both figures for 2015 are the highest since 2008.

These figures were generated from the New York Fed’s Consumer Credit Panel that analyzed millions of consumer credit reports from Equifax.

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, 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.