A number of Wells Fargo employees have come forward claiming they were threatened by their employers to prepare sworn affidavits for home mortgages that were being foreclosed on. The employees went on to say they were threatened to meet daily quotas of 10 or 11 files, which was virtually impossible. The employees claimed if they did not meet quotas, they were first verbally warned, then would receive two written warnings, and ultimately lose their jobs if quota was not met. The employees said it was not only difficult to read through and sign between 10 and 11 affidavits per day, but that they were likely making errors due to the pressure to complete a certain amount.
The first document preparer who contacted news outlets with the story disclosed other concerns with the handling of paperwork and procedures at Wells Fargo. The Wells Fargo employee claimed that she witnessed many homeowners being denied loan modifications after just brief interviews. She went on to say that the office fax machine that received the personal information from homeowners, who were applying for help, went unattended for weeks at a time. She also reported that some homeowners’ homes were foreclosed on after not making payments on interest for as little as $1.18. However, the biggest concern to come from this scandal is the fact that loan processors are signing affidavits, in which they have sworn to have read and understood the entire document, and in most cases, they have not. Many of those who have signed off on the documents do not have proper training or experience to be signing off on these documents.
Some of the loan processors who came forward to tell their stories also submitted copies of e-mails they received from management, which showed signs that the managerial staff is more worried about the number of files pushed per day, than dealing with accuracy and details.
To read more on this story visit: http://economywatch.msnbc.msn.com/_news/2012/04/19/11269115-inside-the-foreclosure-factory-theyre-working-overtime?lite
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
When it Comes to Marriage and Serious Partnerships Financial Compatibility Matters
A detailed survey conducted by Today.com and Self.com found that 37 percent of men and 56 percent of women acknowledge having lied to their partner about money. More than 23,000 people responded to the TODAY.com/SELF.com survey, and about two-thirds revealed that, in a relationship, honesty about money is as important as sexual fidelity. However, many still admit to keeping money secrets.
The poll found that women are nearly twice as likely as men to hide purchases or receipts from their partner, with nearly one-third of women admitting to the practice. When asked why they keep money secrets, about one-third of women reasoned that they earn money, so they deserve to spend it. About one-third said they disagree with their partner about what to spend money on. Those were also the most common answers men offered for why they keep money secrets.
Experts agree that when it comes to marriage and serious partnerships, financial compatibility is important. A long-term pattern of hiding money or having secret credit cards could signal deeper problems, and perhaps even be a sign that the individual is preparing to leave the marriage or relationship.
Financial issues are often a major cause of stress in relationships, and the economic woes of the past five years, including high unemployment and collapsing home prices, have certainly strained many marriages. People with very different philosophies about money may have a hard time making it. Couples who are planning together for a financial future, such as saving money together for retirement, tend to have a better chance of success than those who keep finances separate because they have fundamentally different views about money. Research has also found that struggling with debt is generally a bad thing for relationships, while saving for the future – whether it’s retirement, vacation or college expenses – is generally a good thing.
To read more on this story visit: http://lifeinc.today.msnbc.msn.com/_news/2012/04/24/11291884-how-money-secrets-can-wreck-your-relationship?lite
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
Lenders Are Now Opting for Short Sales
Short selling has become a popular trend in Florida, allowing lenders to sell properties for less than the remaining mortgage balance. In January 2012, short sales averaged 23.9 percent, a larger percentage than foreclosure sales nationwide, which averaged about 19.7 percent. In 2010, President Obama backed short sales by offering incentives to banks. The program offered banks a credit of $1,000 to proceed with a short sale. The program also offered another $1,000 credit to cut deals with financially troubled homeowners. In addition, $1,500 was offered to defaulted homeowners as a “relocation credit” if they agreed to a short sale.
A rise in mortgage defaults is causing more lenders in South Florida to choose short sales. The benefits for the lender include limiting legal fees and the carrying costs of owning the home. However, there is a downside; Lenders must absorb the cost of the shortfall. They can also be deterred by the significant amount of documentation required and the related processing costs. In a short sale, lenders lose an average of about 19 percent of the loan amount, compared with an average of 40 percent through a foreclosure, and a lender’s cost to own a foreclosed house often is about 1 percent of the property value, excluding depreciation.
To read more on this topic visit:
http://therealdeal.com/miami/blog/2012/04/17/for-first-time-short-sales-are-more-popular-than-foreclosure-sales-in-the-u-s/
http://therealdeal.com/miami/blog/2008/05/07/short-sales-one-but-not-always-best-answer/
http://therealdeal.com/miami/blog/2010/03/08/president-obama-turns-attention-to-short-sales-in-effort-to-prevent-foreclosures/
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.
What conditions must a debtor meet for his Federal income taxes to be discharged in a Ch. 7 bankruptcy?
Reducing Tax Debt through Bankruptcy
Dealing with high interest credit cards, medical bills or late car payments may be stressful enough, but dealing with the IRS can create a new level of financial turmoil. The law allows the IRS to place levies on personal property in order to collect taxes. This allows it to seize real property and vehicles, and even take money out of your bank account. Fortunately, a bankruptcy can help you avoid the loss of your property and money. Just as it allows the discharge of unsecured debt, bankruptcy can be used to discharge federal tax debt as well.
Federal income taxes may be discharged in a Chapter 7 bankruptcy if the debtor meets all of the following conditions:
• Income taxes are sought to be discharged: Only personal income taxes may be discharged through bankruptcy. Business payroll taxes and penalties for tax fraud may not be discharged.
• The debtor did not commit willful tax evasion or tax fraud: If a debtor was penalized for repeatedly failing to pay taxes, hiding money or taxable assets from the IRS, or filing a blank or incomplete tax return; these charges may not be eliminated through bankruptcy. The same applies to charges levied due to tax fraud.
• The 240-day rule applies: The tax debt must have been assessed at least 240 days before the bankruptcy petition is filed.
• The taxes stem from a legitimate tax return: The debtor filed a tax return for the relevant tax years at least two years before filing for bankruptcy.
• The past tax debt is at least three years old: The tax debt was originally due at least three years before filing for bankruptcy.
In a Chapter 13 bankruptcy, a debtor will make payments on tax debt through a repayment plan. Such plans last between 36 and 60 months, and the payments are based on the debtor’s disposable income. After the plan is completed, the remaining debts are discharged.
The same dischargeability requirements apply for Chapter 13 plans. Only income taxes from legitimate returns that have been assessed at least 240 days before the petition was filed may be discharged. However, Chapter 13 can be used to pay non-dischargeable tax debts (i.e. unpaid payroll taxes, tax penalties) over time.
The preceding is not intended to be legal advice. If you have questions regarding discharging tax debt, an experienced bankruptcy attorney or tax attorney can advise you on the options available.
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.
Mortgage Balance, Default and Foreclosure
Statistics show that the wealthy may be able to stay in their homes longer after default than the average homeowner. The length of time that a homeowner may be in default before the bank takes action may depend in part on the value of the property. A new report suggests that banks may be more lenient with homeowners who live in million-dollar homes than the average homeowner with a mortgage of $250,000 or less. These homeowners have been able to stay in their homes an average of 792 days without making a payment, while a homeowner with a $250,000 mortgage will likely be required to vacate their home up to six months sooner.
The exact reason for the difference is unclear. Some speculate that several factors weigh into the bank’s decision to initiate foreclosure proceedings, including:
• The expense in maintaining these types of homes during the foreclosure process
• The greater likelihood that the wealthy individual will regain the ability to repay the mortgage in the near future
• The fact that a lot of banks do not package and sell larger mortgage loans, loans which may be made to individuals who banks feel are important citizens in the community or with whom they have a long-standing relationship.
All of these factors may play a role in the bank’s decision to initiate foreclosure proceedings.
Bank foreclosures are happening everywhere in this country. Many homeowners are faced with the reality of losing their homes. But homeowners may have options that will stop or delay the process. One of these options is filing for bankruptcy.
Bankruptcy allows debtors to get a fresh start. Essentially wiping the slate clean, individuals can start over and begin the road to recovering financial stability. Once an individual files for bankruptcy, the court implements an automatic stay. This “automatic stay” requires creditors to hold off on their collection actions while the bankruptcy is pending. Whether individuals are able to keep their homes following the bankruptcy may depend on what type of bankruptcy was filed. But often debtors are able to keep their home and vehicle so they have a place to live while rebuilding credit.
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.
National Decrease in Foreclosure Sales Throughout 2011
During the second quarter of 2011 there was an eight percent decrease in foreclosed home sales compared to the second quarter of 2010, according to RealtyTrac. The third quarter of 2011 experienced another slight decrease of two percent, which put the average home sales of foreclosed homes at 20 percent nationwide, and 19 percent in Florida. This percentage is still extremely high in comparison to the less than five percent before the recession. The decreased number of sales can be attributed to the unraveling of the robo-signing scandal, which first surfaced in early 2010.
Surprisingly, Florida ranked seventh in the third quarter of 2011 with 19.2 percent of foreclosure home sales. Nevada ranked number one, with an average of 75 percent of home sales being foreclosed homes. The second and third ranked states, California and Arizona, averaged just over 40 percent. Many believe that Florida’s lower percentage is due to the fact lenders are often choosing to conduct pre-foreclosure sales (short sales) to avoid dealing with maintenance of properties throughout the foreclosure process.
To read more on this story visit: http://therealdeal.com/miami/blog/2011/08/24/florida-foreclosure-sales-down-22-percent-according-to-realtytrac/
Or visit: http://therealdeal.com/miami/blog/2012/01/26/foreclosed-properties-comprise-20-percent-of-all-u-s-home-sales-19-percent-in-florida/
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.
Palm Beach County Courts Hold approximately 7,000 Zombie Foreclosure Cases
In Palm Beach County, 17 percent of the foreclosure cases are currently lying dormant in Palm Beach County courts. A large portion of the 6,927 ‘zombie cases’ have stalled for more than a year, some dating as far back as 1997. This growing number of vacant and deteriorating homes is creating a widespread problem and affecting the value of other homes on the market. While some of the dormant cases are mistakes due to one party forgetting to request a dismissal, much of the inaction is a result of homeowners filing for bankruptcy, lenders inability to prove ownership, and loan modification negotiations. Whatever the reason, many homeowners are clueless about the status of their cases and have not been making payments for years.
If a case has been dormant for 10 months, the homeowner can legally file for a dismissal of the case. The lender then has 60 days to act. If no action occurs, then the case is thrown out. Peter Blanc, Palm Beach County Chief Judge, thinks Palm Beach County will see a rise in dismissals due to the recent state funding received to hire extra help for foreclosure cases. Another frustrated Palm Beach County Judge, John Hoy’s advice to banks is, “If you can’t take care of old cases, don’t file new ones.” Both judges were in agreement that the problems with zombie cases now, stem from malpractices by banks in earlier years.
To read more on this story visit: http://www.palmbeachpost.com/money/foreclosures/the-zombie-files-nearly-7-000the-zombie-files-nearly-7-000-stagnating-foreclosure-2305388.html?viewAsSinglePage=true
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.
Bank of America Sells Credit Card Debts to Collectors Despite Inaccurate Records
There have been countless lawsuits filed against collection agencies for unlawful debt collection practices. Agencies such as CACH LLC have been buying debt from banks, like Bank of America for a number of years. In many cases the banks are selling debt and not providing proper legal documentation as to who swore in the affidavits or who the actual debtor was. In other cases, Bank of America sold debt to CACH LLC, in which some payments had been made, but banks failed to credit the borrowers.
Thousands of lawsuits have been filed due to the inaccurate debt Bank of America sold to CACH. In many cases where collection agencies file a suit against a borrower and the borrower does not show up for the hearing, a default judgment occurs. However, in some cases the borrower will fight the claim in which the collection agency would be found at fault due to inadequate documentation. Many court officials believe the banks should be held accountable, because in these cases, the suits stem from their inability to produce adequate documentation.
To read more on this story visit: http://www.americanbanker.com/issues/177_62/bofa-credit-cards-collections-debts-faulty-records-1047992-1.html?zkPrintable=1&nopagination=1
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
Wall Street’s Multi-Billion Dollar Trading Scandal That no one is talking about
Wall Street’s latest billion-dollar scandal might end with a prison sentence for some traders. The federal government recently announced they are pursuing an investigation of banks and traders who have been manipulating LIBOR rates. The LIBOR rate, or London InterBank Offered Rate, is the average lending rate banks in London use when lending to other banks.
Banks were illegally setting their own LIBOR rates lower than the actual rate and then persuading municipalities and pension funds to bet against the rate. Ultimately, the banks would come out on top with millions of dollars from the municipalities. The banks were also giving Wall Street traders access to the systems they used to set up the manipulated rates so they could go in and change them as they saw fit. So far the research into the investigation shows that this could be a $750 million scheme. The two banks that have been targeted in the investigation are Barclays and Deutsche. Analysts believe this scandal will far exceed the repercussions of the mortgage/foreclosure scandal for Wall Street.
In addition, many Wall Street traders may find themselves facing jail time over the scandal. These recent events are having a powerful impact on the credibility of Wall Street.
To read more on this story visit: http://finance.fortune.cnn.com/2012/03/23/the-wall-street-multibillion-scandal-no-one-is-talking-about/
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.
New York Attorney Agrees to Pay $4 Million for Foreclosure Malpractice
New York foreclosure attorney, Steven Baum has agreed to a $4 million settlement with the New York State Attorney General, Eric Schneiderman, in a suit alleging that his firm and staff mishandled numerous foreclosure cases. Baum’s firm generated the largest number of foreclosure filings in New York from 2007 to 2010. In this three-year span, the firm filed around 100,000 foreclosure proceedings. Schneiderman intends for this case to set the precedent that attorneys and lenders will be held accountable in his district for wrongful mortgage and foreclosure practices.
Some of the malpractices by the Baum Firm included:
• The firm repeatedly claiming the plaintiff to be the holder of the note, when there was no documentation to prove this statement;
• In many cases the firm used a separate company for much of the processing. By use of the separate company, the firm intended to speed up the documentation process in order to file more foreclosures and increase their own profit;
• Employees from the firm often times were not authorized, trained, or certified to sign off on or handle documents they were signing;
• Many times documents were “pre-signed” without ever being read by an attorney.
Even after the settlement Baum still claims no wrong-doing by him or his firm, saying the Attorney General never disclosed a specific case where his firm preceded with foreclosure on a person whose loan was not in default.
To read more on this story visit: http://www.bizjournals.com/buffalo/news/2012/03/22/baum-settles-with-ag-will-pay-4m.html?page=all
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.