Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Home Construction Up 12%

Posted on January 24, 2013by Admin

The housing market has shown signs of improvement this past year with record-low mortgage rates, an increase in home construction and fewer foreclosures. Home construction exceeded economists’ expectations during the month of December with the start of construction on more than 889,000 homes. Construction rates were up more than 12% from November and nearly 37% from December 2011. Construction picked back up in the Northeast after Superstorm Sandy with new home construction up 19% from November. The new home construction surge suggests low inventory and builder confidence, which are two great signs for the economy.

Economists also tracked applications for new building permits to indicate the confidence in the market, however there was little change from November’s rate. December’s mortgage rates also continued at a record-low percentage, which is another positive indicator that the market is on the road to recovery.

To read more on this story visit: http://money.cnn.com/2013/01/17/real_estate/housing-starts/index.html

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com.

6 Items You Will Pay Less for in 2013

Posted on January 23, 2013by Admin

Below are 6 pricy items that are expected to drop in 2013:

1. Used Cars: If you need a new car, consider purchasing a used car in 2013. Analysts project that used car prices will drop several hundred dollars this year. This drop is related to a spike in lease terminations resulting in extra inventory on used car lots.
2. Gas: Last year’s average gas price was $3.63 per gallon. In 2013, average gas prices are projected to drop to $3.43 according to the Department of Energy. A spike in fuel-efficient vehicles on the road will help keep gas prices lower this year.
3. Ultrabooks: Intel has predicted that laptops with “ultrabook” branding will see a major price drop in 2013. Ultrabooks are known for their slim, light exteriors and high-speed processors. Intel predicts these will retail for $599, approximately half of their normal cost, by the end of this year.
4. Vacation Packages: Vacationers can save more than $1,000 this year by booking their airfare and hotels together. Popular resorts in areas such as Hawaii and Mexico will offer major savings for those who book package deals.
5. Solar Energy Panels: Solar energy panels have become increasingly popular for those trying to heat swimming pools or large homes. Analysts expect these pricy items to decline by as much as 10% this year.
6. Flatscreen TVs: The prices of 50-plus-inch flatscreens are projected to drop nearly 11% during 2013. The bigger the TV, the bigger the price cut.

To read more on this story visit: http://money.cnn.com/gallery/pf/2013/01/22/pay-less-2013/6.html

Credit, Foreclosures, Timothy Kingcade Posts

HSBC Settles Foreclosure Suit for $249 Million

Posted on January 22, 2013by Admin

HSBC settled with the Federal Reserve and the Office of the Comptroller of the Currency for $249 million last Friday for alleged foreclosure abuses. The settlement will offer $96 million in direct cash payments and $153 million in other forms of relief such as loan modifications and forgiveness of deficiency judgments. The terms of the settlement are similar to other recent multi-million dollar foreclosure abuse settlements. Initially, $3.6 million in cash relief will be issued to nearly 4.2 million homeowners for as much as $125,000 each.

HSBC and 13 other banks were issued an enforcement action for charging excessive fees, wrongfully foreclosing on borrowers and using improper documents in April 2011. As a result, the banks were forced to hire independent consultants to investigate the foreclosure abuses and provide compensation for victims, a process known as Independent Foreclosure Review. This process was later abandoned when it proved to be slow moving and expensive. The settlement is expected to provide relief to foreclosure abuse victims much faster and avoid future lawsuits.

To read more on this story visit: http://money.cnn.com/2013/01/18/investing/hsbc-foreclosure/index.html

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.

Credit, Foreclosures, Timothy Kingcade Posts

Florida Leads the Nation in Foreclosures

Posted on January 21, 2013by Admin

Florida led the nation with the highest number of foreclosures throughout 2012. One in 32 Florida homes received a foreclosure filing last year. However, according to RealtyTrac the housing market crash that began six years ago is winding down. The first six years of the housing crisis, Nevada held the number one foreclosure rate in the country. During 2012, Nevada fell to number two with one in 37 homes receiving a foreclosure filing. California and Utah both held top five spots during 2011 and both fell off the ‘top’ list last year, which suggests the Western states might be healing a bit faster than the East.

Foreclosures in Florida stalled during 2011 after the “robo-signing scandal” surfaced. They picked back up during 2012 after the $26 billion deal was signed in February between the five largest mortgage lenders and 49 state attorney generals. Since 2007, more than 91,000 homes have been foreclosed on in Palm Beach and Broward counties alone. The Consumer Financial Protection Bureau released new rules last week that are intended to protect consumers from risky mortgages and hopefully guard the economy from another housing market crash.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Hostess Selling Off Assets, Starting with Wonder Bread

Posted on January 18, 2013by Admin

Hostess has started the process of liquidating its assets, only two months after the popular baked goods company announced filing for bankruptcy. Last Friday, Flowers Foods announced it was purchasing Wonder Bread and three other bread brands from Hostess for $360 million. Flowers will also be purchasing the rye bread brand, Beefsteak, for $30 million. Flowers Foods owns Nature’s Own and Tastykake. Flowers Foods is waiting for approval from the bankruptcy court, after which, an auction will take place in several weeks. If Flowers is the winning bidder, the company can close the deal.

Hostess was forced into bankruptcy last November after its workers went on strike. The company and the union were unable to come to an agreement, forcing the company to close its doors. More than 18,000 employees lost their jobs and Hostess fans cleared out its stores’ shelves. Most believe that Hostess will have no problem selling off the majority of their brands. There is some indication that Flowers may have plans to make bids on other various snack brands owned by Hostess.

Foreclosures, Timothy Kingcade Posts

Consumer Groups Criticize New Mortgage Rules

Posted on January 17, 2013by Admin

The Consumer Financial Protection Bureau (CFPB) announced its new mortgage rules last week that would protect borrowers from risky mortgages. Some consumer groups are criticizing the rules with the argument that these rules only protect the banks. One of the CFPB’s new rules is that lenders cannot issue mortgages to those who do not have the “ability-to-repay.” This rule states that borrowers must be able to prove they can afford the loans. The new rules will also end the outbreak of multi-million dollar lawsuits against lenders for wrongful foreclosure practices.

Consumer groups argue that the rules provide a legal shield for banks that is detrimental to borrowers. The CFPB has also installed a “qualified mortgage” standard, meaning that when a loan meets the lending criteria, it will become a “qualified mortgage.” This standard protects banks from lawsuits filed by borrowers or buyers of mortgage-backed bonds. According to consumer groups, this standard will make it possible for lenders to issue unaffordable loans that still meet the “ability-to-repay” criteria. Lower-income borrowers will be at risk of losing their home and destroying their credit, but unable to take legal action.

To read more on this story visit: http://money.cnn.com/2013/01/10/real_estate/mortgage-rules/index.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Rise in Unemployment in 2013

Posted on January 16, 2013by Admin

There has been a slight rise in claims for unemployment benefits just two weeks into the New Year. Economists say this is an indicator of the current state of the job market. During the first week of the year, approximately 371,000 people filed first-time unemployment claims, 4,000 more than the last week in December. Although the job market recovery has a long way to go, it has improved since the height of the recession when weekly unemployment claims surged above 600,000. There were roughly 12.2 million Americans jobless during December, meaning the unemployment rate for the month was 7.8%.

Unemployment claims seemed to have leveled off during 2012, ranging from 350,000 to 400,000 throughout most of the year. The U.S. economy has added an average of 150,000 jobs to the market each month throughout 2012; a rate that barely keeps up with the population growth each month. Economists say that if the market could reduce filings to 320,000 and 350,000 claims per week in 2013, this would greatly improve the economy. If claims were in this range, approximately 250,000 jobs would be added to the economy each month.

To read more on this story visit: http://money.cnn.com/2013/01/10/news/economy/unemployment-benefits/index.html

Foreclosures, Timothy Kingcade Posts

New Rule to Protect Borrowers From “Risky” Mortgages

Posted on January 15, 2013by Admin

The Consumer Financial Protection Bureau (CFPB) has adopted a new rule that will protect borrowers from risky mortgages. Although it will not immediately make mortgages easier to get, it will spell out what lenders must do to ensure their borrowers can afford their mortgages. Part of the reason the housing market burst was due to borrowers agreeing to mortgages they did not understand and could not afford. As a result, millions of homeowners have been foreclosed on and housing prices have dropped more than 30 percent since 2006.

The rule will go into effect next year and prohibits qualified mortgages from:

• Containing “risky” provisions, such as terms that exceed 30 years, interest-only payments or payments where the principal amount increases (negative-amortization payments)

• Carrying fees and points in excess of 3 percent of the loan

• Issuing to borrowers who will spend more than 43 percent of their income on debt payments after the mortgage

There has already been some concern from consumer groups that the rule is too protective and does not help low-income borrowers. Some groups fear that the debt-to-income ratio of 43 percent is too high for most low-income households. The CFPB said that banks would be able to ease their standards over time, however it is necessary for now.

Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Filings Are Down

Posted on January 14, 2013by Admin

According to the National Bankruptcy Research Center (NBKRC), the November 2012 bankruptcy filing rates were down 10% from October 2012. Filings dropped from approximately 96,000 in October to 86,000 in November. However, this is a familiar trend, mostly due to the holiday season. A positive sign from the November report is that the annual filing rates have dropped. When compared with November 2011 reports, filings were down 15% in 2012.

During 2013, bankruptcy filing rates are at approximately one in every 220 adults or 4,600 per every million adults. Four states stand out with more than 70% of the national average including: Tennessee, Georgia, Nevada and Utah. There are six states with less than half of the national average including: Alaska, Washington D.C., South Carolina, Vermont, North Dakota and Hawaii.

The NBKRC report showed that filing rates in the far West have experienced a more extreme decline than anywhere else in the country. Nevada, Hawaii, Alaska, Arizona and California rates are all down by more than 22% from this time last year.

To read more on this story visit: https://www.nbkrc.com/November2012_News.aspx

Bankruptcy Law, Timothy Kingcade Posts

How Your Taxes Will Be Affected by the Fiscal Cliff Deal

Posted on January 11, 2013by Admin

The Fiscal Cliff deal will likely affect every taxpayer. Below are the effects it could have on your taxes:

1. Payroll Taxes: Wage earners will pay 6.2% in payroll tax on their first $113,700 in wages as opposed to the 4.2% rate that has been the payroll tax rate for the past two years.

2. Tax Rates: Individual taxes are going up for filers with incomes above $400,000 and couples above $450,000. Upper class taxpayers will pay 39.6% above the threshold. In the past, they paid 35% since 2001.

3. Investment Taxes: Capital gains and dividend tax rates for filers earning more than $400,000 or $450,000 for couples will increase from 15% to 20%. Taxpayers in the lowest bracket will pay 0% and all others will pay 15%.

4. Family Tax Breaks: President Obama’s Recovery Act has been extended for five years including:
a. American Opportunity Tax Credit: a partially refundable credit of up to $2,500 per year for four years for low-income families.
b. Child Tax Credit: Low-income parents can claim as much as $1,000 per child under 17.
c. Earned Income Tax Credit: provides a credit for working American with low- and moderate-incomes.
d. Expanded Dependent Care Credit: allows certain taxpayers to deduct up to 35% of expenses to a max of $6,000 for two children (permanently extended).

5. Itemized Deductions/Personal Exemption: Taxpayers who make $250,000 and above and couples who make $300,000 and above will soon be limited with the personal exemptions and itemized deductions they can take.

6. Alternative Minimum Tax: The income exemption level will be permanently adjusted for inflation.

7. Estate Taxes: The estate tax exemption will remain at $5.12 million and will be indexed to inflation going forward.

8. Marriage Penalty: Married couples will continue to receive a deduction that is twice that of individuals and income ranges for the 10% and 15% tax brackets are also doubled.

9. Debt Forgiveness: Homeowners who receive principal forgiveness or go through a short sale or foreclosure will not have to pay tax on the amount of debt forgiven. This will extend for one year.

10. Tax Breaks: Filers can continue to deduct state and local sales taxes. This deal extends to a bevy of tax breaks.

To read more on this story visit: http://economy.money.cnn.com/2013/01/02/taxes-fiscal-cliff/?iid=SF_PF_River

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced 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, P.A. at www.miamibankruptcy.com.