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Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Government Debt Collectors Targeted for their Abusive Practices

Posted on March 20, 2015by Admin

A recent CNN report found that special treatment is being given to debt collectors hired by government agencies. These collectors are charging steep fees and making threats, which include wage garnishment, foreclosure and even arrest. Other debt collection firms that are hired to go after credit card debt or auto loans are held accountable for such acts.

A senior member of the House Financial Services Committee is currently reviewing the report. He said he fears that low-income Americans are the most likely to suffer. The high fees leave many Americans unable to pay off their debts and afford their monthly bills.

The debt collectors are using power given to them by the government to pressure individuals into financial commitments they cannot afford. Unfortunately for consumers, the FTC admitted that the laws governing debt collection do not apply to the types of bills that government debt collectors pursue.

Click here to read more on this story.

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.

Credit, Foreclosures, Timothy Kingcade Posts

Refinance with HARP before Mortgage Rates Increase

Posted on March 19, 2015by Admin

The Home Affordable Refinance Program (HARP) is a program that was set up in 2009 to assist struggling homeowners in refinancing their homes- reducing mortgage payments by an average of $3,000 a year. It has also allowed homeowners to pay their mortgages off faster. Taking advantage of the benefits HARP has to offer can reduce your monthly mortgage payments and pay your mortgage off in less time.

How do you know if you qualify for HARP? If your mortgage is $625,000 or less, you most likely qualify for the program. HARP was created by the Government as a way to help the economy recover from the recession. Homeowners who have refinanced through HARP have saved an average of $250 a month. But you must act NOW! These valuable benefits are set to expire at the end of this year.

Click here to read more about how to reduce your mortgage payments through HARP.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Following Obama’s Lead, Democrats Propose Bill to Relieve Student Loan Debt

Posted on March 18, 2015by Admin

President Obama addressed the growing problem of student loan debt in a speech he gave on Tuesday at Georgia Tech. He spoke about his plans to make it easier for students to eliminate some of their student loan debt through bankruptcy. Two days later, thirteen democrats in the Senate introduced a bill backing the President’s plans called the “Fairness for Struggling Students Act of 2015.” The bill will treat student loans issued by private lenders the same as other types of private unsecured debt in bankruptcy. Changes made to the federal bankruptcy code in 2005 made it nearly impossible for struggling students to discharge their student loan debt.

Private student loans make up only 10% of all student loans. The other 90% are loans issued by the federal government. If the bill is passed, it would only account for the 10%. The Consumer Financial Protection Bureau estimates that there is $165 billion that stems from private student loans and approximately $1.2 trillion in total student loan debt.

President Obama and the Senate are targeting private student loans due to their high interest rates, lack of consumer protection and inflexible repayment options. The bill is the White House’s latest attempt to address the rapid increase in student loan debt in America. Plans have also been set up for borrowers to file complaints against loan servicers.

Click here to read more on the story:

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 http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Rent Prices on the Rise

Posted on March 17, 2015by Admin

Renting used to be considered a stepping stone to homeownership, but now it’s becoming a barrier, according to a new report from Zillow. The report showed rents across the nation have been on the rise for the past year. In September 2012 rent prices reached a peak of 6.3% after the housing market crashed. Since January 2014, rents have increased 3.3% across the U.S. Some cities have even surpassed the national average. For example, Kansas City has more than doubled, increasing 8.5% since last year.

The report also showed that rents have grown at twice the pace of wages in the country since 2000, making it difficult for many Americans to afford their monthly bills. On average, Americans are spending approximately 30% of their income on rent, 5% higher than in the past.

Economists and real estate experts agree that rental affordability will continue to ‘deteriorate for the next two years.’ Both homeowners and renters will likely be affected since rental affordability tends to impact the housing market as a whole.

Real estate experts say it is sometimes better to buy than rent, but it largely depends on how long you plan to stay in the home. Nationwide, the ‘break-even horizon’ is around two years, but in some cities, like New York City, it can be as high as seven years. Breaking even, is when you are in your home long enough for ownership to be more cost-effective than renting. In Miami, for example, it takes just one year to break-even, according to real estate experts.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

President Obama Announces Changes for Student Loan Repayment

Posted on March 16, 2015by Admin

President Obama recently signed a “student aid bill of rights,” which outlined an assortment of policy changes to make it easier on borrowers to pay back their student loans. It will require businesses that service student loans to ensure students know how much they owe, along with providing repayment options and helping students get back in good standing who are falling behind on payment.

In addition, President Obama has asked the Treasury and Education Departments and the Consumer Financial Protection Bureau to report by October 1, 2015 on whether or not bankruptcy laws or other laws should be amended to include student loans. Lenders have always resisted loosening bankruptcy standards for student loans. However, many believe that student loans should be eligible for discharge when students are burdened by heavy debt.

Federal student loan borrowers are eligible for discharge in bankruptcy court for borrowers with permanent disabilities. However, the review will focus on students who borrower from private lenders, who do not have the same protections as federal student loan borrowers. According to the White House, approximately 40 million Americans have student loan debt and more than 70 percent of graduates with bachelor’s degrees have an average of $28,400 in student loan debt.

Click here to read more on Obama’s plans to change student loan debt repayment.

Foreclosures, Timothy Kingcade Posts

Bill would Force Banks to Maintain ‘Zombie’ Homes if Passed

Posted on March 13, 2015by Admin

For years, homeowners who are being foreclosed upon have vacated the property before the foreclosure has been processed, often leaving the home in shambles. This has caused neighboring houses in those communities to lose significant value.

Currently, banks do not have a responsibility to maintain the properties until after the foreclosure is complete. This can leave homes vacant for months or even years. In an attempt to try and force banks and other mortgage lenders to maintain vacant properties during the foreclosure process, State Attorney General Eric Schneiderman plans to introduce a bill that would require not only maintenance from banks during the process of foreclosure, but allow homeowners to stay in their homes until ordered out by a judge.

The bill, entitled the Abandoned Property Neighborhood Relief Act would also create a registry of vacant properties to assist municipalities in enforcing local laws regarding property maintenance. Any fines collected would go into a fund to help hire more code-enforcement officers. Florida, New York and New Jersey hold the three highest rates of zombie properties, according to RealtyTrac.

Click here to read more on the Abandoned Property Neighborhood Relief Act.

Foreclosures, Timothy Kingcade Posts

‘Zombie’ Homes Decreasing Neighborhood Property Values

Posted on March 12, 2015by Admin

Zombie homes are the name given to homes that are in the process of being foreclosed upon and have been abandoned by the property owner. In Florida, banks are not legally obligated to take care of properties until the foreclosure process is complete.

Unfortunately for nearby homeowners, the families who are foreclosed on are not the only ones who suffer. For example, in Florida a house worth $250,000 before the housing market crash is now worth only $68,000, due in part to zombie homes in the neighborhood. Zombie homes significantly impact the value of other homes in the neighborhood.

The State of Florida has more than 35,000 zombie homes, which is more than three times the national average, according to RealtyTrac. Many of the abandoned homes have overgrown lawns, plagued by snakes, spiders or other insects. Another common problem among these types of homes is “squatters,” who move into the vacant properties and then file for adverse possession, claiming that they now own the property because they have been living there for a certain amount of time.

Some states are in talks to pass a “Zombie Prevention Bill,” which would hold banks accountable for properties while in the process of foreclosure.

Click here to read more about the toll zombie homes are taking on Florida neighborhoods.

Credit, Foreclosures, Timothy Kingcade Posts

Three Red Flags of a Mortgage Rescue Scam

Posted on March 11, 2015by Admin

The housing market crash has given rise to a new type of scam known as the mortgage relief scam, which plagues on vulnerable homeowners. These “mortgage rescue” con artists prey on struggling homeowners, desperate to stay in their homes. Americans have lost millions to these mortgage relief scams in recent years. In most cases, the scam promises homeowners they will receive a new loan with better terms if they first pay a large, upfront fee. The homeowner then sends payments to the fictitious “loan modification company,” instead of paying their mortgage.

Below are three red flags of a mortgage relief scam:

1. Requires an upfront fee. The company seeks an upfront fee and promises it can get your lender to modify your loan. The Federal Trade Commission’s Mortgage Assistance Relief Services Rule makes it illegal for a company to collect fees before a homeowner receives an offer of relief and accepts it.

2. Faking legitimacy. During the company’s mortgage relief pitch, they often invoke government programs to seem legitimate.

3. Request you sign over the deed to your home. Last but not least, beware if the company asks you to sign over the deed to your house while they process your loan modification.

Click here to read more on how to spot a mortgage relief scam.

Foreclosures, Timothy Kingcade Posts

Trending: High-End Homes See More Foreclosures

Posted on March 10, 2015by Admin

The national foreclosure rate fell to 1.4% in December 2014, the lowest rate since March 2008, according to CoreLogic. However, foreclosures involving mortgages of $750,000 plus remain at a higher rate of 2.5%. After the housing market crash of 2008, foreclosure percentages have reached as high as 6.8% in May of 2012. Economists agree that it appears the market is on the mend. However, struggling homeowners with more expensive mortgages are recovering less quickly than others.

Before the housing market crashed, homeowners with $750,000 plus mortgages had lower rates of foreclosure than average. The recession has changed all that. CoreLogic data shows that in January 2006, the national average foreclosure rate was .1% and the foreclosure rate for $750,000 plus mortgages was .05%.

Some experts believe the higher foreclosure rate for “wealthier” homeowners is linked to the stock market crash and the subsequent housing market crash in 2008. Another contributing factor is that most states with higher stock in luxury homes also have the highest foreclosure rates since the crash. For example the three states with the highest foreclosure rates are New Jersey with a rate of 5.2%, New York with a rate of 4.0% and Florida with a rate of 3.7%. All of which have a large concentration of high-end real estate.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Debt Collectors Calling You? Make sure you know your rights.

Posted on March 9, 2015by Admin

In honor of National Consumer Protection Week, at the law firm of Kingcade & Garcia we want to take a moment and educate you on your rights as a consumer. There are few things more frustrating than being harassed by a debt collector for a bill you cannot pay. There are federal laws that protect consumers from inappropriate and deceptive debt collection practices.

The Fair Debt Collection Practices Act defines consumers’ rights when it comes to dealing with debt collection agencies and regulates what debt collectors can and cannot do legally when collecting on a debt. A collection agency has the right to call you at your home or workplace within reasonable hours, unless you specifically ask them not to do so. Within five days of calling you, a collection agency is required to send you a written confirmation stating the amount you owe and the name of the creditor.

If you do not believe you owe the debt, you can send the agency a letter explaining this within 30 days of receiving the notice, according to the Federal Trade Commission. With the letter, include any proof that the debt is not yours. The collection agency must cease contacting you at this time, unless it can send you written verification that the debt is in fact yours.

If the debt is yours and you want the agency to stop contacting you, you can send a letter requesting this. After your letter has been received, there are two instances in which you may still be contacted by the debt collector:

• The collector may contact you to let you know there will be no further contact;
• The collector may contact you to let you know that a specific action will be taken (i.e. – filing a lawsuit against you). If this is the case, it is important that you respond to any court summons you receive, otherwise you forfeit your right to fight a wage garnishment and the debt collection agency can take money directly out of your bank account.

Important Tip: Make sure you keep copies of communication you have had with the debt collection agency. This will be of great importance if legal action occurs.

Debt collectors can also contact third parties (typically only one time) to find out general information about you (i.e. – your address, phone number or place of employment.)

What Debt Collectors Cannot Do:

• Contact you at unreasonable hours. Debt collectors cannot contact you during unreasonable hours, before 8 a.m. or after 9 p.m. They also must quit calling you at your place of employment if you notify them in writing or over the phone that you cannot accept calls there.
• NO harassment. A debt collector cannot harass you about a debt you owe. Harassment can include threats of violence, obscene language, multiple phone calls or publishing your name publicly because you owe a debt.
• NO unfair collection practices. A debt collector may not engage in unfair collection practices (i.e. – trying to collect more than you owe, depositing a post-dated check early or taking your property when they are not legally allowed to do so).
• NO double dipping. If a collection agency has more than one of your debts, it cannot apply payments you make to one debt to another. It also cannot apply payments to a debt you say you do not owe.
• NO lying. A debt collector cannot lie to you in an attempt to collect on a debt. These lies can include falsely representing him or herself as an attorney, government official or someone else; accusing you of committing a crime; stating you owe more than you do. Debt collectors cannot threaten legal action or wage garnishment will occur if this is not the case. They also cannot give false credit information or lie about the agency they work for.

If you have an attorney representing you, the collection agency has to talk to your attorney, not you. As a general rule, a debt collector cannot discuss your debt with anyone besides you, your spouse and your attorney.

If you have questions regarding the Fair Debt Collection Practices Act, click here to watch this short video.