Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Foreclosure or Short Sale- Which Option is Right for You?

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When mortgage payments begin to pile up, some struggling homeowners opt to sell their home.  However, if selling your home does not materialize within a certain period of time – you are left with two options, either short sale or foreclosure.

Before filing foreclosure, it is important to have some knowledge of the process and speak with an attorney.  First, you will receive a Breach Letter that will lead to a ‘Foreclosure Workout’ between you and your lender.  The objective is to come to a resolution for both parties in order to cease delinquent payments.  This process will take 45 days, after which a foreclosure action will commence if there is no resolution. It usually takes 90 to 120 days before you receive a Notice of Default or NOD.

Afterwards, a temporary indulgence is granted, which usually takes 30 to 60 days where you are given a chance to bring the loan current. The borrower can also come up with special or long term forbearance. This involves payment suspension for 18 months and up to 24 months for long term. Other procedures may apply, for example, military indulgence, pre-foreclosure sale, deed-in-lieu of foreclosure, forbearance and modification.

A short sale can be a very enticing solution, but should come with fair warning.  Short sale involves your lender selling your home at a much lesser amount than you owe.  For example, if you are required to pay $190,000 on your loan, the price of your home can be sold for “selling short” of $40,000 at an equivalent of $150,000 only.

For homeowners who choose this option, it is important to remember the tax exemption that was originally granted by Congress in 2007 has expired.  The exemption of taxes for “imputed income” due to short sale transactions ended at the last quarter of 2014.  As a result, the ‘selling short’ or remaining balance of $40,000 will leave you liable for a hefty tax bill from the IRS at the end of the year.

Understanding the pros and cons of foreclosures and short sales is crucial before moving forward with either option.

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.realtytoday.com/articles/18529/20150706/making-a-choice-between-foreclosure-and-short-sale-for-your-property.htm

Debt Relief, Foreclosures, Timothy Kingcade Posts

Struggling Buyers Making a Comeback in Today’s Housing Market

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It’s hard to believe that seven years ago the Great Recession hit Florida.  Our state led the nation during the housing boom and was the first to crater when the housing bubble burst.   However, nearly eight years after the downturn began, buyers damaged by excessive medical bills, underwater mortgages and a dismal job market are finding their way back into the real estate market.

Lenders like Fannie Mae have changed its lending criteria. Real estate agents, banks and mortgage brokers are working with buyers, counseling them- oftentimes free of charge- on how to make repairs and get their credit back on track.   Free seminars are cropping up all over the state informing buyers about programs, timeframes for waiting, how to spot credit errors, how to purchase damaged homes in need of renovation and how to get down payment assistance.

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

Tampa Bay Judges Crack Down on ‘Serial’ Bankruptcy Filers

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In the past year and a half, at least 85 Tampa Bay residents have been banned from refilling for bankruptcy, after it became evident that they did so only to save their homes.  Another 25 bay area debtors who have pending bankruptcy cases have been ordered to show cause as to why they should not be categorized as ‘abusive filers.’

Tampa Bay bankruptcy judges have had enough and are cracking down on non-lawyers who have prepared petitions for these serial filers.  To draw in new business, one preparer bragged to prospective clients that he had filed for bankruptcy six times to block foreclosure on his own home.

Debtors already barred from re-filing include:

A Palm Harbor couple who filed for bankruptcy 11 times in eight years to stop foreclosure. The bank got a final judgment against them in 2007, but repeatedly had to cancel foreclosure auctions because of all the filings.

Another Palm Harbor couple who filed 18 bankruptcy petitions over ten years. They had been living free for 12 years before the bank finally got a writ of possession in 2014.

A Safety Harbor woman who has filed seven bankruptcy petitions since 2011, including two in 2015. She has not made a mortgage payment in more than six years.

Bankruptcy judges agree that these serial filers are a ‘drain on the system’ and take time away from the legitimate cases.  Currently, there is no limit as to how many bankruptcy petitions an individual can file.  In all bankruptcy cases, it is true that as soon as a petition is filed, an automatic stay takes effect barring banks and other creditors from trying to collect debts, including mortgage debts.  At the same time, the filer must present an honest and accurate account of assets, liabilities and creditors.

There is a procedure in place to catch anyone declaring bankruptcy for a third time.  Judges can order the debtor to come to court and prove why he or she should not be declared an abusive serial bankruptcy filer.

If you have any questions on this topic or are in a 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, Credit, Debt Relief, Timothy Kingcade Posts

FREE help with credit problems

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Credit can be confusing, particularly if you are already overwhelmed with debt.   It is important to know that no matter how big or small your financial problems are there are resources available that can help you get back on track.

Credit counselors. Financial counseling agencies do much more than help consumers get out of debt.  Services include a budget and creditor review, housing counseling for those struggling with their mortgage or those hoping to buy a home, a one-on-one review of your credit report and much more!  These services are often free or low-cost and these type agencies always try to accommodate individuals and families with low incomes who cannot afford to pay.

Consumer Websites.  There’s no shortage of information on the Internet, but not all of it is accurate and some of it can mislead consumers.  Below are some quality resources.

  • Information published by the Consumer Financial Protection Bureau (CFPB)
  • Credit.com blog
  • The Consumer Recovery Network
  • CareConnect USA

Bankruptcy Attorney.  If you cannot see a way out of your debt, are receiving frequent calls from debt collectors or are being sued by a creditor or collector you cannot afford to pay, consider talking to a consumer bankruptcy attorney.  Most bankruptcy attorneys offer a free initial consultation / evaluation to assess your financial situation to see if bankruptcy is the best option for you.

Credit Reporting Agencies.  By law, these reporting agencies must explain information in your credit reports that you do not understand.  Additionally, you can contact the bureaus to place a fraud alert or credit freeze on your report to dispute a mistake on your credit report.  You can begin the process by getting a copy of your credit report from each of the three major credit bureaus: Equifax, Experian and TransUnion. You can download a copy of your free credit report at www.annualcreditreport.com.

Government Agencies.  You can find a wealth of helpful consumer information on the CFPB website, but more importantly, you can file a complaint or tell your story.  You can also search the CFPB complaint database to find out if other consumers are experiencing similar problems.  There are also Do Not Call list registration and resources and tools for stopping robocalls.  Telemarketing scams can cost you money and sometimes can result in new debt you must repay.

If you have any questions on this topic or are in a 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.usatoday.com/story/money/personalfinance/2015/08/29/credit-dotcom-free-help-credit-problem/32328883/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Can I include my payday loans in bankruptcy?

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Many individuals on the verge of bankruptcy are also trapped in an endless cycle of payday loans.  This popular source of short-term financing is easy to get, but comes with a high price tag.   Finance charges on these type loans can range from 15 to 30 percent.   That is comparable to getting a loan with an annual percentage rate of nearly 800 percent!  It’s easy to see how these loans can quickly spiral out of control.  But there’s good news- payday loans can be included in a bankruptcy filing.  These type loans are considered an unsecured debt and are dischargeable in bankruptcy.

Because of the predatory nature of many payday loans, bankruptcy courts oftentimes have little patience for the demands of these payday lenders.   However, it is important to avoid taking these loans out immediately before filing for bankruptcy.

After filing for bankruptcy, you should avoid taking out payday loans in the future.  Instead, you should consider the following alternative loan sources:

  • Local credit unions
  • Cash advance on a credit card
  • Small loans from family or friends
  • A small loan company
  • A payroll advance from your employer

If you have any questions on this topic or are in a 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.totalbankruptcy.com/rules/can-you-include-payday-loans-bankruptcy.aspx

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The most important price factor for insurance companies REVEALED!

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A two-year investigation of more than two billion insurance quotes from companies across the country has revealed that credit history has the biggest impact on the cost of your insurance premium. According to the study by Consumer Reports, the score can take into account what kind of credit card consumers have along with whether they have recently applied for credit.

The car insurance credit score is different from your FICO score and how it figures into your premium varies depending on the insurer and your state, according to Consumer Reports.   The insurance companies are using this score not to predict whether you are a good driver, but whether you will file a claim.

A poor credit score has caused rates to more than double in some states.  For example, in Florida, someone with an excellent credit score had a premium of $1,409.  An individual with a poor credit score had a premium of $3,826.  To put this in perspective, the premium amount for someone with a DWI who had an excellent credit score was $2,274.

Consumer Reports’ research reveals that some insurers are penalizing drivers more for having a poor credit score. If you feel your car insurance company has given you a low score, clearing up inconsistencies on your credit report can help.  You can download a copy of your free credit report at www.annualcreditreport.com.

If you have any questions on this topic or are in a 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.wral.com/credit-history-revealed-as-most-important-factor-for-insurance-companies-/14887484/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

NEW Rules will Boost Credit Scores for Millions

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If unresolved medical bills are keeping your credit score low, there’s good news.  Changes are coming this fall to Fair Isaac’s FICO Score, which will take a closer look at unpaid medical bills and accounts sent to collections.  Consumers whose only negative mark is from medical debt can expect their credit score to increase by 25 points.

These new rules are far reaching, as more than half of all debt on credit reports is from medical bills, according to the Consumer Financial Protection Bureau (CFPB).  The changes also expand banks’ abilities to offer loans to borrowers who may not have otherwise qualified.

In July, approximately 64.3 million U.S. consumers had medical debt on their credit reports, according to the credit bureau Experian. Of 106.5 million total consumers with agency collections on their reports, 9.4 million had a zero balance. Under the new credit score system (FICO Score 9), those consumers will not be penalized.

The changes come as a result of an agreement between the three major credit bureaus using FICO scores- Experian, Equifax and TransUnion.  In addition, delinquent medical bills will not be reported to credit bureaus for six months.  This is another win for consumers, allowing them time to pay claims and resolve disputes with their insurance company.

While these changes make it easier to qualify for a loan, it is important consumers keep their debt-to-income ratio under 43 percent.   This is the highest ratio a borrower can have and still qualify for a mortgage in today’s market.

The CFPB gives the following debt-to-income ratio example:

If you pay $1,500 a month for your mortgage and another $100 a month for your car loan and $400 for your remaining debts, your monthly debt payments total $2,000.   If your gross monthly income is $6,000, then your debt-to-income ratio is 33 percent.

If you have any questions on this topic or are in a 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.moneytalksnews.com/new-rules-may-boost-your-ailing-credit-score/

Bankruptcy Law, Credit, Student Loans, Timothy Kingcade Posts

The Affects Bankruptcy has on Children

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Filing for bankruptcy can be a challenging time, especially for those who have children.  However, sometimes it is the only option. Below is a detailed look at the impact bankruptcy can have on children.

Child’s Property Status

Any property you have purchased for your child, including: clothing, furniture, toys, books, etc. is considered your property in a bankruptcy case. However, it will not be included in your bankruptcy estate if you are able to prove that the property was purchased with your child’s income. This would apply if your child received funds from employment or other form of income. Receipts from your child’s bank account are also helpful in excluding the property from your bankruptcy estate.

Child Support Income

In the State of Florida, child support income is exempt in bankruptcy, if it has been saved in a bank account. Again, receipts are important to prove that the money in the account is indeed child support income.

Child’s Financial Assets

Any bank accounts or college savings accounts that are in your child’s name are exempt in bankruptcy.   These include custodial bank accounts and 529 college savings accounts.  Any deposit made to the account less than 365 days before filing bankruptcy may be seized by the bankruptcy trustee and used to repay creditors.  Fortunately, any deposits made between 365 to 720 days or more prior to filing bankruptcy are exempt.

School Tuition and College Student Loans

$1,875 in educational expenses is usually allowed for minor children of bankruptcy filers. While college-aged children will still be able to take out  student loans, you will be excluded from taking out loans on their behalf, after filing for bankruptcy. It is always best to speak with your bankruptcy attorney to explore how trustees view tuition payments in your area.

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:

https://www.myhorizontoday.com/bankruptcy101/how-does-bankruptcy-affect-my-children/

Foreclosures, Timothy Kingcade Posts

Foreclosures Reach Eight-Year Low

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Foreclosures have fallen to their lowest level in almost eight years. This can be attributed to the steady increase in jobs and rising home prices. According to the real estate trend tracking company CoreLogic, there were 38,000 completed foreclosures in July. This figure is down 6.2% from June’s numbers and it is the lowest since December 2007.

July’s figure shows a significant 67.9% decrease from the peak of 117,225 completed foreclosures back in September 2010. Anand Nallathambi, president and CEO of CoreLogic said, “As we enter the final months of 2015, the housing market continues to gather steam buoyed by improving economic conditions and the release of pent up demand for homeownership.”

Nallathambi also stated that the housing market’s recovery is reflected in the decline of delinquency and foreclosure rates. In July, the national foreclosure inventory, tracked homes at varying stages of foreclosure and found approximately 469,000. This was equivalent to 1.2% of all homes with a mortgage, which was far less than the 650,000 homes (1.7 %) in July 2014. The total decline over the past year for the national foreclosure inventory was 27.9%.

Before 2007’s housing market crash, foreclosures averaged at 21,000 per month nationwide from 2000 to 2006. Following the financial crisis that began in September 2008, there have been approximately 5.8 million completed foreclosures nationwide. Mortgages in serious delinquency (90 days or more past due) have also significantly declined by 23% over the past year.

States with the highest number of completed foreclosures from July 2014 to July 2015 were Florida with 98,000, Michigan with 47,000, Texas with 33,000, California with 27,000 and Georgia with 27,000. These states accounted for nearly half of all completed foreclosures nationally. Four states and the District of Columbia had the highest percentage of foreclosure inventory of all mortgaged homes: New Jersey with 4.8%, New York with 3.7%, Florida with 2.7%, Hawaii with 2.5% and the District of Columbia with 2.4%.

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://thehill.com/policy/finance/252920-foreclosures-nearing-eight-year-low

Student Loans, Timothy Kingcade Posts

College Student Debt Relief Could Reach $3.2 Billion

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More than 3,000 former Corinthian College students can expect to see their student loan debt erased. This marks the first wave of debt relief in relation to the fall of the for-profit higher education chain. In the event that all Corinthian students seek relief, taxpayers can expect to be hit with a $3.2 billion bill.

Nearly 12,000 students have sought discharge of their college loan debt from the federal government. According to the Education Department, many students have claimed that their school has either closed down or they were misled about job prospects. Approximately 3,100 closed-school claims have already been approved, totaling around $40 million in student loans, the department said.

Ted Mitchell, Education Undersecretary stated that proper processing of the remaining claims will take some time, if it is done right. While these figures are unprecedented, these numbers only represent a fraction of the students who might qualify for debt relief. For many students, the relief cannot come fast enough as they struggle to make ends meet while paying their student loans.

Recently, more students are claiming to be victims of fraud and are actively submitting what is known as “borrower’s defense” claims. As of late last month, the majority of nearly 12,000 claims have been Corinthian-related. For the Department of Education, this situation ventures into new territory. Over the past 20 years, officials could recall only five borrower defense cases. Mitchell has been appointed as the department’s new “special master” for debt relief. Approximately 350,000 students have attended Corinthian schools over the past five years, which means there will be more claims to come.

The Obama administration has stepped in to curb the issues surrounding the for-profit college industry. The administration says that the for-profit industry relies too heavily on federal student loans and often misleads students. Investigators have discovered that Corinthian schools charged exorbitant fees and blatantly lied to their students about job prospects.

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.

Source:

http://www.columbian.com/news/2015/sep/06/college-student-debt-relief-could-hit-3-2b/