Bankruptcy Law, Timothy Kingcade Posts

Study Reveals Mortgage Holders Have Highest Non-Mortgage Debt

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According to a June 2015 report by Black Knight Financial Services (BKFS), U.S. mortgage holders possess the highest levels of non-mortgage related debt in ten years. These debts include credit card debt, auto loan debt, and student loan debt.

Four main loan groups were evaluated in the report. These include:

  • Federal Housing Administration (FHA) and VA loans;
  • Portfolio loans;
  • Private loans;
  • Government-Sponsored Enterprise (GSE) loans.

Utilizing data from Equifax Servicing data and McDash Credit’s database, BKFS was able to examine U.S. mortgage holders’ levels of non-mortgage related debt. The report revealed that Americans with mortgages have an average of $1,400 more non-mortgage related debt this year than in years past. So far for 2015, the total amount of non-mortgage debt reached $24,825. For 2014, it was $23,412. In 2006, it was $22, 817.

The report explains, “Non-mortgage debt is a key component of home affordability–the more total debt and the higher monthly non-mortgage payments borrowers have, the less money is available to put toward a new home purchase, to qualify for refinancing or, potentially, to meet current mortgage obligations.”

The largest category for non-mortgage debt was automobile debt, which accounted for 81% of overall non-mortgage debt. Since 2011, auto debt has been responsible for $2,094 of the nearly $2,600 increase in overall non-mortgage related debt. BKFS also found that student loan debt has skyrocketed to a 15% all-time high, among mortgage holders, with an average loan amount of $35,000. On the other hand, credit card balances for mortgage holders have decreased to below 83%.

Borrowers holding FHA/VA loans were shown to have the highest levels of non-mortgage related debt. FHA borrowers carry the highest student loan and auto debt amounts, as well as highest total non-mortgage related debt. However, GSE borrowers have 24% lower overall non-mortgage debt than FHA loans.

BKFS has discovered a direct correlation between non-mortgage debt, mortgage inquires, and prepayments. Borrowers with a recent mortgage inquiry on their credit report carry nearly 40 percent or $10,000 more debt on average than those who do not. Meanwhile those with a recent inquiry who have paid their mortgages on time have approximately $4,000 less non-mortgage related debt than those without the inquiry.

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://themreport.com/news/data/08-02-2015/report-finds-mortgage-holders-have-highest-non-mortgage-debt

Bankruptcy Law, Timothy Kingcade Posts

Study Takes a Closer Look at Personal Bankruptcy after Obamacare

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The U.S. Supreme Court has officially approved the Obama administration’s health-care reform. Boston Law Professor Daniel Austin conducted a study into personal bankruptcy filings in an effort to shed some light on how the mandatory health insurance law of 2005 has made an impact.

Among a sample of Massachusetts residents, Austin evaluated 5,400 bankruptcy cases filed between 2005 and 2013. He discovered that those who filed for bankruptcy protection had far less medical debt, compared with the rest of the country. Massachusetts is the only state where medical debt is not the leading cause of personal bankruptcy.

Austin speculates that mandatory health care among all 50 states could lead to affordable health insurance, which should serve to keep families out of bankruptcy. Multiple studies have revealed that medical debt is the number one reason why people file for bankruptcy. During his 2009 State of the Union address, President Barack Obama pointed out that 62.1% of consumer bankruptcies were the result of medical debt.

Professor Austin’s study shows only 18% to 25% of personal bankruptcies were filed in the U.S. because of medical debt. Massachusetts residents had only 3% to 9% of bankruptcy cases filed due to medical debt. Based on this information, Austin says that the Massachusetts health-care reform may be the main reason why less residents are filing for bankruptcy.

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://blogs.wsj.com/bankruptcy/2015/07/01/the-future-of-personal-bankruptcy-in-a-post-obamacare-world/

 

Foreclosures, Timothy Kingcade Posts

South Florida Foreclosure Rates Decrease

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As the local housing market continues to recover from the economic downturn of 2008, foreclosure rates have decreased in two South Florida counties.

According to a recent report by the property analytics firm CoreLogic, the percentage of Miami-Dade homes in foreclosure for May 2015 was 3.68%. This is positive news, since the percentage had been 3.88% in April 2015. Looking back one year, we see an even bigger decrease from 6.61% in May 2014.

Also, according to CoreLogic’s report Broward County foreclosures have decreased as well. This past May, we saw 3.35%, down from 3.54% in April. Similar to Miami-Dade, there was a significant drop from 6.14% recorded in May 2014.

Although the numbers of Miami-Dade and Broward County foreclosures have dropped, both counties still hold a higher percentage of foreclosed homes than Florida’s statewide numbers. As a whole, Florida’s foreclosure rate is at 2.89%. The U.S. national rate is 1.29%.

Earlier this month, another report revealed that Miami-Dade, Broward and Palm Beach combined hold the sixth highest foreclosure rate in the nation. While the numbers are still considered high, experts remain positive that the amount of foreclosed homes in South Florida will continue to decrease.

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.miamiherald.com/news/business/real-estate-news/article29094796.html

Foreclosures, Timothy Kingcade Posts

Chapter 13 Bankruptcy Buys Time for Borrowers Struggling with Student Loan Debt

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For many, student loan debt is a burden that can wreak havoc on a borrower’s financial situation. Reports show that recent graduates with a bachelor’s degree accumulate an average of $35,000 in both federal and private student loan debt. In an effort to get a better handle on their financial predicament, some are turning to bankruptcy.

After obtaining a master’s degree in intelligence and global security, a Leetsdale man struggled to make ends meet. With $80,000 worth of student loan debt, the 29-year-old decided to file for bankruptcy to help manage his financial situation. In a similar case, a Bradenton, FL woman accumulated $223,000 in student loan debt after obtaining her bachelor’s degree in dental hygiene. With interest rates and fees, the 43- year-old calculated that she would be paying the loan back for the rest of her life.

College funding expert, Mark Kantrowitz explains a simple rule of thumb: your total student loan debt at graduation should be less than your annual starting salary. If it is more, you can expect to encounter serious financial problems as you try to pay down the debt.  Filing for Chapter 13 bankruptcy can help.

While a Chapter 13 bankruptcy cannot discharge student loan debt, the debt can be reorganized and placed on an income based repayment plan, which can reduce the monthly payments substantially. After filing for Chapter 13 bankruptcy, the Leetsdale man’s student loan payments went from $1,000 to $200 a month, while the woman in Bradenton was able to consolidate her debts into a smaller single payment.

However, with a Chapter 13 bankruptcy, the reorganization only lasts for five years. After that, all payments revert back to their normal amounts. Chapter 13 serves to force an income-based repayment plan for five years, which in many cases allows borrowers enough time to get back on their feet. It seems that private student loans are causing borrowers to turn to Chapter 13 bankruptcy as an option because of higher interest rates and limited flexibility.

According to the Consumer Financial Protection Bureau, the cost of both private and public college degrees has skyrocketed and national student loan debt has ballooned to $1.2 trillion. Unfortunately, college graduate salaries have barely increased by comparison. Oftentimes, college graduates are stuck with high monthly payments, low wages, and the agonizing decision of whether to pay their student loans or buy groceries.  Despite the tough circumstances that tend to hinder graduates from qualifying for home mortgages, or properly saving for retirement, many are still fighting to conquer the student loan debt crisis.

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.post-gazette.com/business/money/2015/08/02/Student-loan-debtors-using-Chapter-13-bankruptcy-to-buy-time-on-payments/stories/201508020047

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

Policy Changes Help Surviving Spouses Handle Reverse Mortgages

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Numerous horror stories regarding reverse mortgages have forced the Department of Housing and Urban Development (HUD) to take another look at its current policy. Changes have been made, allowing reverse mortgage lenders to transfer certain loans to HUD when a borrower dies and is survived by a non-borrowing spouse.

Prior to this change, the surviving spouse who was not listed as a borrower had to leave the home. Now, loan servicers have a new option. For many couples, it is risky to own a residence where only one spouse in on the mortgage. If that spouse dies and they have taken out a reverse mortgage, strict guidelines come into play.

A recent widow faced loosing her home after her husband took out a reverse mortgage and then passed away shortly thereafter. The reverse mortgage was only in the deceased spouse’s name, despite the couple jointly owning the property. Reverse mortgages are only available to those 62 years of age and older. At the time of the reverse mortgage, only the woman’s husband met the age requirement.

Such dealings can become complex but with the policy change, the government hopes to alleviate this. Under the revised policy, lenders will be allowed to proceed with reverse mortgage claims, known as home equity conversion mortgages (HECM). This can only be done with eligible surviving non-borrowing spouses and case numbers assigned before August 4, 2014.  It is recommended that a reverse mortgage not be taken out unless both spouses can be on the loan agreement.

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.miamiherald.com/living/home-garden/article25519939.html
http://www.consumeraffairs.com/news/feds-ease-reverse-mortgage-policy-for-non-borrowing-spouse-again-061515.html

 

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Banks to Blame for Failed Loan Modifications

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In 2009, the Obama administration launched the Home Affordable Modification Program (HAMP), as a proposed “lifeline” for nearly 4 million struggling homeowners. Borrowers were promised much needed loan modifications to help with their financial situation. Unfortunately, a recent report has revealed some disturbing details about the program.

Over the past six years, Special Inspector General Christy L. Romero of the Troubled Asset Relief Program has been closely monitoring HAMP. According to her report, only 887,001 borrowers received loan modifications, which reduced their mortgages. Romero’s report showed that approximately 4 million borrowers’ requests for help were denied, accounting for about 72% of applications submitted since the program began. It appeared that the big banks repeatedly avoided helping borrowers, without regard for their situation.

Unable to work because of her disability, a Vermont woman applied for a mortgage loan modification through Bank of America. The process began in 2012 but dragged on for more than two years as the bank repeatedly requested copies of documents she had already provided. Several errors were made on her file, including the bank’s request for proof that she was no longer married to a man she did not even know, and incorrect information about whether she wanted to keep her property.

Cases like this are all too common, and many believe it is because of the way HAMP was designed. Since the program is voluntary for the banks, it appears the banks have chosen to not help the borrowers who need it the most. The numbers of rejected applicants is a testament to the flaws within the program.

Romero’s report detailed how CitiMortgage, a unit of Citibank, rejected 87% of borrowers who applied for a loan modification. JPMorgan Chase also had a similar denial rate of 84%. Bank of America rejected 80%, while Wells Fargo turned away 60% of applicants. It seems that delaying a borrower’s loan modification request is profitable for the banks, leading to more interest and fees being charged to the borrower.

According to Ms. Romero, the Treasury was supposed to ensure that the banks involved in the program were not wrongfully rejecting homeowners for a modification. Unfortunately, this appears to be exactly what has been happening. Fortunately, in the Vermont woman’s case, she was able to finally receive her loan modification after seeking help from a qualified and experienced attorney. Still, many homeowners see the government program as false hope since millions of borrowers did not get the help they needed.

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.nytimes.com/2015/08/02/business/pulling-down-underwater-borrowers.html?_r=0

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

Homeowners in Foreclosure Receive Firm Ruling from Judges

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Florida homeowners have been served a clear message from both West Palm Beach and Tampa Bankruptcy Judges. Chief Judge Paul Hyman, Jr. in the Southern District of Florida and Judge Michael Williamson in the Middle District of Florida have ruled that struggling homeowners should not be allowed to fight a foreclosure on their home after surrendering it in bankruptcy. This means that homeowners must decide whether they will surrender their property in bankruptcy or save it from foreclosure.

In the judge’s eyes, a bankruptcy allows debtors a clean slate and a chance to start over, not the opportunity for a leg up on creditors in other courts. For these judges, they will not tolerate such “inconsistent positions in federal and state courts.” If homeowners who have surrendered their property to bankruptcy continue to fight state courts to save their homes from foreclosure, they will face harsh penalties.  This puts struggling homeowners at a considerable disadvantage.

Many disagree with the judges’ views, stating that debtors who surrender their property to the bankruptcy courts should not have to surrender their home to creditors. The basis for this argument is that there is a strong distinction between the two. However, for Hyman and Williamson, surrender means relinquishing property to “make it available to the secured creditor by refraining from taking any overt act that impedes” foreclosure.

Oftentimes, a bankruptcy will allow a debtor to liquidate their property and use the funds to repay creditors. Underwater mortgages or homes facing foreclosure are often deemed abandoned and it reverts back to the homeowner. Now, with the new case law, lenders receive control of the surrendered property instead of the trustees. This gives lenders the ability to enter bankruptcy court and benefit from homeowner foreclosures.

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.dailybusinessreview.com/home/id=1202733488406/Bankruptcy-Judges-Clamp-Down-on-Homeowners-in-Foreclosure?mcode=1202617073880&curindex=0&slreturn=20150703180236

Bankruptcy Law, Timothy Kingcade Posts

How Bankruptcy can Affect Your Debts

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Bankruptcy is a legal process, which allows an individual or company to either discharge most of their debts or pay them off through a structured repayment plan. For those who are considering filing for bankruptcy, it is natural to wonder what will become of their debts. This all depends on the type of debt that is owed and whether it is secured or unsecured. In bankruptcy, secured and unsecured debts are handled differently.

Secured debts like mortgages and car loans have collateral which serves to secure repayment. If a secured debt it not paid, the creditor may either repossess or sell the collateral to cover your debt. Unsecured debts like credit card debt and medical bills do not have collateral. If you fail to pay this type of debt, creditors may turn the debt over to a collection agency or file a lawsuit against you.

The type of bankruptcy you choose to file also makes a difference in how the debt is handled. The two most common types of bankruptcy are Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy, unsecured debts are typically discharged a few months after filing. Secured debts may be cleared as well but it will not stop the creditors from obtaining the collateral. The only way to prevent this is to keep working toward paying off the secured debt.

Chapter 13 Bankruptcy

For those who file Chapter 13, a three or five-year repayment plan will be put in place for both secured and unsecured debts. In most cases, unsecured debt may not need to be repaid and is often discharged with a Chapter 13 bankruptcy. Regarding secured debts, creditors are unable to take the collateral if you are on a repayment plan.

While these rules seem straightforward, there are exceptions. It is important to note that certain types of debt may not be discharged in bankruptcy. These debts include:

· Alimony
· Child Support
· New debts after bankruptcy has been filed
· Certain student loans
· Certain taxes
· Debts with a co-signer
· Fraudulent debts

Every case is different, so it is important to consult with a qualified and experienced bankruptcy attorney to help you through the process and find the best debt-relief solution for you.

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.debt.org/bankruptcy/

Bankruptcy Law, Timothy Kingcade Posts

Partridge Family Star David Cassidy to Auction his Florida Home after Bankruptcy

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After filing for bankruptcy earlier this year, ‘The Partridge Family’ star David Cassidy is losing his South Florida home. The 7,000 square foot waterfront Fort Lauderdale mansion is to be auctioned for $1.9 million.

The 65-year-old filed for Chapter 11 bankruptcy protection this past February and in June, the court granted Cassidy permission to auction off the estate. Following his divorce, Cassidy claims he will no longer need the mansion since his work demands frequent travel, according to the Sun Sentinel.

Having accepted the situation, Cassidy plans to move on and begin the next chapter of his life. According to People Magazine, Cassidy listed assets and debts of nearly $10 million. He also owed several creditors such as CitiBank, Wells Fargo Bank and American Express over $17,000 each.

Cassidy spoke with New York Daily News about his bankruptcy proceedings. “This is necessary for practical reasons to reorganize my life as I go through divorce and to restructure my finances.”

The 70’s superstar claims that once he hands over the keys, he is not looking back. Ending a 23 year marriage and then loosing his home after nearly 15 years, Cassidy plans to take this time to overcome his personal struggles. The auction will be handled by Fisher Auction Company and is tentatively scheduled for September 9, 2015.

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.newsmax.com/TheWire/david-cassidy-bankruptcy-auctioning-florida/2015/06/30/id/652813/

http://www.timesfreepress.com/news/national/entertainment/story/2015/jul/30/david-cassidy-prepares-auctifloridmansion/317324/

Bankruptcy Law, Timothy Kingcade Posts

Consumer Victory over Seedy Debt Collectors

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Approximately $4 million worth of checks have been placed in the mail to partly compensate thousands of consumers who were scammed by a group of seedy Southern California debt collectors. The Federal Trade Commission (FTC) reports that the checks were sent out to conclude a settlement which was reached last year between the commission and the Asset and Capital Management Group.

The debt collection firm had bought the consumers’ debt from creditors for pennies on the dollar and then falsely threatened the debtors with arrest, wage garnishment, seizure of their property and lawsuits. The firm also disclosed private debt information to the victims’ employers, colleagues and family members, according to the FTC. As shocking as this case is, consumers must remember that they have rights when it comes to debt collection and should not hesitate to contact authorities if a collector violates these rights.

Under the Fair Debt Collection Practices Act (FDCPA), you are protected from these predatory debt collection practices. Federal law sets parameters for when and how a debt collector may contact you. The following is a list of protections the FDCPA provides to you:

  • Debt collectors may not call you outside the hours of 8:00 a.m. and 9:00 p.m., unless you specify that they are allowed to do so;
  • Creditors must always fully disclose their identity and never pretend to be someone they are not;
  • Debt collectors cannot inform anyone else regarding your debts;
  • Creditors are not allowed to threaten or harass you in any form.

“Consumers shouldn’t be subjected to threats and intimidation,” said Jessica Rich, director of The FTC’s Bureau of Consumer Protection. She was also pleased that the victims of the scam will receive money back from the defendants.

Defendants Thai Han, Jim Tran Phelps, Keith Hua and James Novella who operated over a dozen debt collection agencies and shell corporations, had their personal assets seized in order to compensate victims. The defendants have also been permanently banned from the debt-collection business. Officials reported that up to 95,000 people fell victim to the scam.

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.latimes.com/business/la-fi-lazarus-20150707-column.html