The Consumer Financial Protection Bureau plans to propose a straightforward approach to loan administration that should benefit consumers and servicers, which are the firms that loan owners hire to collect payments, disburse taxes and insurance, and chase after delinquent borrowers.
The Bureau hopes to finalize the new rules by this summer and have them take effect by January 2013. However, it is likely that mortgage servicers will be given another year to incorporate the rules into their companies’ practices, which means the actual changes might not be seen until January of 2014.
Below is a list of the new rules that will be set in place by the Bureau:
• Mandatory issuing of monthly statements that are understandable to the loan holders. Mortgage servicers would be required to issue broken down loan statements each month that are detailed and easy for loan holders to understand.
• Required interest rate fluctuation warnings. A statement must be issued on what the current rate will be and the options for the loan holders if they are unable to afford the new rates.
• Mortgage servicers must give notice before purchasing “force-placed” insurance on the property.
• It will be required that the property has fire insurance and in some cases where it is not, the servicer must purchase its own as collateral on the property.
• Servicers will be forced to credit accounts immediately as they are paid by the loan holders. This has been required as a result of many consumer complaints that servicers are holding onto the payments for so long that an additional late fee is tacked on, costing consumers more unnecessary money.
• Servicers would be forced to practice with fewer errors made. Customer service from mortgage servicers will be more accessible and available if the consumer believes a mistake has been made on their account.
To read more on this story visit: http://www.latimes.com/business/realestate/la-fi-lew-20120506,0,7793027.story
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 Gets a BIG Surprise at their Front Door
The residents of a Liberty City neighborhood recently came together to clean up an abandoned property and later in the day planned on delivering the collected trash to a Bank of America branch. According to the Miami Workers Center, the home is owned by the Bank of America. Trenise Bryant, a member of the Miami Workers Center who organized the clean-up said, ”Banks maintain foreclosed properties in white neighborhoods why can’t they do the same in black communities?’ It’s bad enough these big banks put families out of their homes, now they just let the houses sit there bringing down the property value for everyone else in the neighborhood.”
To read more on this story visit: http://photoblog.msnbc.msn.com/_news/2012/05/03/11526492-protesters-in-miami-clean-garbage-from-foreclosed-homes-and-dump-it-at-bank?fb_action_ids=359465957435303%2C3864095560290&fb_action_types=news.reads&fb_ref=type%3Aread%2Cuser%3A1RchtAP5LJ9kvYUWzTJKGr9yz-8&fb_source=other_multiline
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
Bankruptcy filings decrease as many Americans Struggle to afford the Filing Fee
In recent years, filing for bankruptcy has become a luxury for people who have seen their debt snowball out of control due to events like job loss, foreclosure or medical emergency during the economic downturn. The average cost to file for Chapter 7 bankruptcy protection, the most common form of consumer bankruptcy, is more than $1,500, according to recent research submitted to the National Bureau of Economic Research.
The cost of filing for bankruptcy has risen in recent years as a result of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, which aimed to reduce the number of bankruptcies taking place by adding more requirements to the filing process — including additional paperwork and the credit counseling and debtor education.
The research, conducted by a group of professors from Columbia University, the University of Chicago and Washington University in St. Louis, examined how bankruptcy filings spiked after people received their tax rebates in previous years. They estimate that another 200,000 consumers, who would otherwise not have enough money to file, will use their tax refunds to pay for bankruptcy this year.
Gerri Detweiler, director of consumer education for Credit.com warns consumer of ‘going it alone.’ “Make one mistake and your case is dismissed,” she said. “A dismissed bankruptcy hurts your credit just as badly as one you complete. So you are stuck with all of the downside without the fresh start.”
She also warns against ‘low-cost document preparation services’ claiming to help consumers fill out necessary documents. “It’s easy for consumers to think they’re getting sound legal advice even though the preparers aren’t lawyers,” she said.
To read more on this story visit: http://www.abcactionnews.com/dpp/money/money-some-seeking-bankruptcy-are-too-broke-to-file
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
Student Loan Debt Reaches the $1 Trillion Mark
As student loan debt in America continues to grow, college graduates continue to have trouble finding jobs and paying off their debt. Instead, many graduates are enrolling in further schooling, which is deferring their repayment but deepening their debt. Student loan debt has now reached the $1 trillion mark, surpassing auto-loan and credit card debt.
This year, the average amount of student loan debt per borrower averaged about $25,000, that’s a 25% increase from 10 years ago. However, it is not just young adults suffering from student loan debt. A recent study revealed that the baby boomer generation (60+ years) owes about $36 billion in student loans. The Federal Reserve Bank of New York reported that about one-third of student loan payments are at least 30 days delinquent, nationwide. Not to mention, since new bankruptcy laws in 2005 were passed, the majority of student loan debts are unable to be discharged through bankruptcy.
President Obama has openly voiced his concern about the student loan debt crisis, proposing many ideas before Congress to aid struggling borrowers. Although Obama has shown his concern, he still promotes the importance of a higher education. Many Republican candidates find his ideas about modifying student loan repayment, creating ways to make repayment easier, and student loans in general to be a burden to the government. Former Senator, Rick Santorum announced his belief that rather than promote higher education and utilization of student loan programs, the focus should be on promoting blue collar jobs that do not require a college education.
To read more on this story visit: http://www.nacba.org/News/NACBANews/tabid/87/articleType/ArticleView/articleId/277/Associated-Press-Explosion-in-Student-Loan-Debt-Reaching-Crisis-Proportions-But-Largely-Flying-Under-Radar.aspx
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
Children are the Most Innocent Victims Affected by the Housing Crisis
A reported 2.3 million children have become victims of foreclosed homes to date. According to Julia B. Isaacs of Brookings Institutions, there are 3 million more children who are at risk of being forced out of their family homes due to foreclosure. Isaacs also reported that of those 2.3 million children, approximately one out of every ten has faced difficulties and negative effects due to the foreclosure of their family home.
In many cases, the problems arise from the relocation that follows the foreclosure. Studies prove that children who are relocated tend to have lower scores on math and reading assessment tests. Children’s relationships with their parents and family members are also negatively affected because of the financial stress. Analysts have also seen a direct correlation between relocation of children and health problems (such as doctor and emergency room visits). Children who are in areas with higher foreclosure rates also tend to have more exposure to high crime rates. Isaacs reported that the rates of affected children are the highest in Nevada, Florida, Arizona, California and Michigan.
To read more on this story visit: http://www.huffingtonpost.com/anna-cuevas/23-million-children-are-v_b_1447223.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
Wells Fargo Document Processors Come Forward about ‘Foreclosure Mill’ Work Conditions
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.