FREE CONSULTATION

Credit, Foreclosures, Timothy Kingcade Posts

A Borrowers’ Bill of Rights

Posted on March 24, 2011by Admin

Recent “robo-signing” and foreclosure scandals suggest that for thousands of homeowners, fairness and competency have not been so readily available. According to witnesses at recent congressional hearings, borrowers with on-time payment histories who sought loan modifications frequently were told they needed to stop payments for two to three months before they would be eligible to even discuss changes to their loan terms. When these individuals and businesses applied for modifications, they were sent foreclosure notices because they were in default.

It’s also suggested that servicers “pyramid” late fees and sloppy documentation, have had an increasing affect on borrowers’ debts to the point where foreclosure has become inevitable.
Some of the most blatant errors involve property insurance records. According to the National Consumer Law Center, $30,000 in fees were added to one homeowner’s principal balance by a bank during the seven months it took to process the modification request. It is reported abuse such as this that’s led to hundreds of lawsuits against banks and servicers that are clogging court calendars nationwide. This has prompted state attorney generals to negotiate a national settlement with the 14 biggest banks and servicers.

The draft proposal calls for billions of dollars in penalties from the banks along with additional billions in principal reductions for distressed and underwater borrowers. The core of the agreement would essentially amount to a new mortgage servicing bill of rights for borrowers. It sets out minimum standards and operating procedures that would govern how homeowners are treated in the future.

Below is a quick overview of the proposed “borrowers’ bill of rights”:

• Servicers would be required to employ enough trained loss-mitigation staff to deal with all borrower inquiries and request for loan modifications

• Servicers would be required to identify the bank or investor that is the legal owner of the mortgage

• Servicers will have to provide mortgage customers with a “single point of contact” – a designated employee, with a name and contact information – for their loan modification requests

• Dual-tracking of modifications and foreclosures would be banned

• Servicers would be prohibited from advising on-time customers to default, or discouraging borrowers from seeking help from non-profit counseling organizations.

• “Force-placed” insurance practices would be severely limited, including prohibitions on obtaining high-premium policies from subsidiaries, affiliates, the lender or servicer

If the proposed settlement occurs, it could give significant new protections to homeowners and borrowers, even for those that never had a payment problem or a need to modify their mortgage terms.

To read more on this story, visit:
http://www.miamiherald.com/2011/03/20/2119880/a-borrowers-bill-of-rights.html

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 Law, Foreclosures, Timothy Kingcade Posts

Filing for Bankruptcy Could Save your Home

Posted on March 15, 2011by Admin

By the time a foreclosure notice arrives, many struggling homeowners figure they are out of options. However, there is one step many often overlook: filing for bankruptcy. The impact of filing for bankruptcy- especially on your chances of getting a loan- may not be as dire as many consumers assume. In fact, homeowners facing foreclosure may be able to improve their credit by filing for bankruptcy.

In the eyes of lenders, by filing for bankruptcy, you are making an attempt to pay back what is owed and keeping up with your payments. That help can make a big difference for homeowners struggling to deal with a lending industry which is overwhelmed by the mortgage mess.
Bankruptcy automatically stops the foreclosure process, giving the struggling homeowner and the court time to try and get back on track with your mortgage payments. Even if you fail to save your home, the consequences of a bankruptcy filing may be less severe than foreclosure. In fact, bankruptcy laws were established to provide an orderly process for people in financial trouble to reorganize their debts, start fresh and rebuild their lives.

Many of the individuals that come into my office are not living extravagant lifestyles; instead, they are forced to take drastic steps because of a change in circumstances, whether it’s the loss of a job or a divorce. A bankruptcy filing will not guarantee that you will be able to keep your home. However, it does stop the foreclosure process and will buy you time while the court reviews your finances and attempts to work out a payment plan with lenders.

To read more on this story, visit:
http://www.msnbc.msn.com/id/41787682/ns/business-personal_finance/

If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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. website at www.miamibankruptcy.com.

Florida Bar, Foreclosures, Timothy Kingcade Posts

Miami-Dade to get new Foreclosure Mediators

Posted on March 9, 2011by Admin

The State’s largest foreclosure mediation program is coming under new leadership, after its original managers lost a bid to continue heading up the Supreme-Court mandated process. Oasis Alliance, which won the contract through an open bidding process, will begin transitioning to replace The Collins Center on March 28.

Like many foreclosure prevention programs that have surfaced in the wake of the housing collapse, court-ordered mediation has not been able to meet the expectations of its creators. A recent report from the Office of the State Courts Administrator found that only 6 percent of distressed homeowners eligible for mediation worked out a resolution with the bank. In Miami-Dade County, that percentage is 5.6 percent.

The main roadblock has been getting borrowers to show up at the negotiation. Homeowners were reached in only about half of cases eligible for mediation in Miami-Dade, the report found. Of the borrowers that actually attended mediation, 32 percent reached an agreement with their lender.

Miami-Dade County’s multilingual population, large geographical area and battered housing market make it a particularly difficult region for managing foreclosure mediations. There are about 70,000 unresolved foreclosure cases in Miami-Dade County court, compared to about 15,000 in the judicial circuit where Oasis is currently operating.

To read more on this story, visit:
http://www.miamiherald.com/2011/03/04/2098336/collins-dumped-as-foreclosure.html

Foreclosures, Timothy Kingcade Posts

Rising Gas Prices Could Lead to an Increase in Foreclosures

Posted on March 7, 2011by Admin

Rising gasoline prices are making a bad situation even worse, particularly in the area of Homestead, FL., where many residents drive some 30 miles to work in Miami. A recent article in the Wall Street Journal reports Homestead having one of the highest foreclosure rates in the nation for the past two years. So while the foreclosure problem is starting to subside in many cities, the problem in places like Homestead could grow.

Data prepared for The Wall Street Journal by CoreLogic Inc. showed that in two Zip Codes in the Homestead area, 33032 and 33033, more than 44% of all mortgages were three months or more delinquent as of November. Those were the highest rates in the country. The communities in the two Zip Codes are filled with modest, middle-class homes, many built from 2004 to 2006. Some of those homes are now empty after the owners left or were evicted. Some of those still around are considering leaving. Of Homestead’s 21,300 mortgages, nearly 9,000 are severely delinquent, with 6,100 homes in a state of foreclosure and more than 900 owned by the bank and likely empty, CoreLogic said.

This trend is causing many families to reconsider the total cost of living far away from urban centers, not just the cost of the home.

Credit, Timothy Kingcade Posts

Former NFL star filed bankruptcy before committing suicide

Posted on February 24, 2011by Admin

There used to be a stigma about bankruptcy, but that stigma is long-since gone. In today’s economy, people from every walk of life have filed for bankruptcy to get relief from overwhelming debt. Now it has been announced that even former football stars have turned to bankruptcy.

On Thursday, Dave Duerson left a note behind asking that his brain be tested for chronic traumatic encephalopathy (CTE) before he committed suicide. The 50-year-old former NFL star was experiencing many personal struggles before his death, including financial problems. In September of last year, he filed for bankruptcy after a series of unfortunate financial struggles.

Just like many people, Duerson found himself unable to pay his credit card bill, mortgage and other debts. However, his road to bankruptcy was unique. After his football career, Duerson purchased multiple McDonald’s franchises. Later, he sold the restaurants to purchase a sausage company that supplied meat to McDonald’s.

The outlook was positive, and Duerson’s food company built a state-of-the-art meat production plant. However, the opening of the plant was delayed because of freezer problems. Those problems caused the bank to revoke his line of credit for the company.

Duerson took out a second mortgage on his home to get things started at the meat company. In the meantime, he sued the freezer company and was awarded a judgment for $34 million in 2004. But the freezer company has yet to pay him.

Now, the man was left with two mortgages on his home and mounting bills. The bankruptcy filing listed $34.6 million in assets, but much of that is made up of the judgment owed to him by the freezer company. He also listed nearly $15 million in liabilities. Those liabilities are owed to secured and unsecured creditors such as the mortgage lender, his former spouse, the State of Wisconsin and a bank that issued him a credit card.

This story is an example of how even a successful NFL star can find himself facing financial problems that are not entirely of his own making.

Source: Chicago Breaking Business, “Bears’ Duerson had pending personal bankruptcy,” Becky Yerak, 21 Feb 2011

Foreclosures, Timothy Kingcade Posts

More than 14 percent of Florida mortgages in foreclosure

Posted on February 24, 2011by Admin

It used to be that signing your mortgage documents was an exhilarating experience. New homebuyers eagerly agreed to the terms of the loan because they knew it was an important step towards becoming homeowners.

Now, most homebuyers (and lenders for that matter) sign those mortgage documents with trepidation. And in Florida, there is a good reason for their hesitation. According to the Mortgage Bankers Association, more than 14 percent of all mortgages in Florida are in foreclosure. That is the highest foreclosure rate in the country.

People who excitedly signed those mortgage papers only a few years ago are now having trouble making the payments. Perhaps they have lost their jobs, or maybe the adjustable rate mortgage became too high to pay. Or perhaps the homebuyers have encountered a different financial challenge as the Great Recession takes its toll on Floridians. Regardless of the reason, “more than 20 percent of all loans in Florida are somewhere past due or somewhere in foreclosure,” according to the vice president of the MBA.

There is another possible explanation for the rise in the percentage of Florida mortgages in foreclosure. The foreclosure process in Miami-Dade County now takes nearly twice as long as it took in 2007. Once a home enters foreclosure, it takes 742 days for the foreclosure to be completed. That means that as new homes enter foreclosure, more homes are still in the process.

For the 14 percent of homeowners in foreclosure and the 5 percent who are more than 90 days behind on mortgage payments, the future may seem bleak. However, they should know that there are legal options, especially before the foreclosure process begins. An experienced foreclosure defense or bankruptcy attorney can explain those options and help individuals make decisions that protect their assets.

Source: Miami Herald, “Florida’s foreclosure rate is nation’s highest,” Toluse Olorunnipa, 17 Feb 2011

Foreclosures, Timothy Kingcade Posts

The State of New York Guarantees Court-Appointed Lawyers to Homeowners Facing Foreclosure

Posted on February 18, 2011by Admin

A recent article in the American Bar Association (ABA) Journal reports that New York will be the first state to offer all homeowners facing foreclosure a court-appointed attorney. According to the New York Times, there are approximately 80,000 foreclosure cases in the New York state court system. Court officials plan to draw appointed attorneys from legal aid groups and volunteer organizations. Judge Jonathan Lippman, the state’s chief judge, has asked the New York legislature for a $100 million increase for legal services programs over the next four years. The first courts to implement the plan will be in Queens and Orange counties.

Foreclosures, Timothy Kingcade Posts

Foreclosure Filings Drop Nationwide as Officials Raise Questions over Process

Posted on February 18, 2011by Admin

A recent article in the Washington Post reports foreclosure filings fell to about 260,000 last month nationwide, 17 percent lower than in January 2010. In areas where judges and law enforcement have taken aggressive actions against faulty foreclosures, the drop was even sharper.

In Maryland, where Wells Fargo and Ally Financial last month dismissed pending foreclosures because they were approved by a “robo-signer,” foreclosures fell by 70 percent from last January. In Massachusetts, where the state Supreme Court in January invalidated some foreclosures and called into question many others, there was a 66 percent fall.

In Florida, where law enforcement officials are considering criminal charges in foreclosure cases, there was a 54 percent decline. January was also the third straight month in which the number of foreclosure filings fell under 300,000. The trend comes after filings reached above 300,000 for 20 straight months, according to a report released Thursday by Irvine, Calif.-based RealtyTrac.

The number of foreclosure filings began to drop last fall after large mortgage servicers such as Bank of America, J.P. Morgan Chase and Ally put some foreclosures on hold after admitting that some of them had been improperly prepared. Much of the slowdown is expected to be only temporary, until the reviewing of procedures, resubmitting of paperwork and federal investigation is complete.

Bankruptcy Law, Timothy Kingcade Posts

Bookstore mega chain Borders files for chapter 11 bankruptcy

Posted on February 17, 2011by Admin

Borders Group Inc. has recently filed for chapter 11 bankruptcy. The filing comes after months of failed maneuvers aimed at avoiding bankruptcy. The group, which operates Borders and Waldenbooks bookstores, finally announced that it does not have the necessary capital to meet its financial obligations.

As the country’s second largest “brick and mortar” book seller, Borders has faced many challenges in recent years. This announcement was not unexpected, and bankruptcy protection may help Borders come back stronger than before.

Borders’ biggest unsecured creditors are five book publishing houses: Penguin Putnam Inc., Hachette Book Group, Simon & Schuster Inc., Random House and Harper Collins Publishers. The companies stand to lose the most if Borders is unable to pay back the money they owe.

Chapter 11 bankruptcy reorganization is not the best way for all companies to resolve debt issues. In fact, for small businesses, chapter 7 or 13 may be a better option. However, for companies of Borders’ size, chapter 11 offers many opportunities. First and foremost, chapter 11 bankruptcy gives Borders the chance to close stores, reorganize its internal operating structure and access new capital.

The company will continue to operate in bankruptcy. However, the company president said today that Borders plans to close about 30 percent of the 644 stores they currently operate.

To make ends meet during this time, GE Capital has agreed to loan Borders $505 million. That loan is subject to the bankruptcy court’s approval. If approved, it will help ensure that the stores Borders chooses to keep open will be able to continue operating.

As you can see, chapter 11 bankruptcy is not an easy solution to Borders’ debt. But it may be the best way for the company to reorganize and get back to business.

Source: Wall Street Journal, “Borders Files for Chapter 11 Bankruptcy Protection,” Joseph Checkler and Eric Morath, 16 Feb 2011

If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy and foreclosure defense attorneys at (305) 285-9100. 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. website at www.miamibankruptcy.com.

Bankruptcy Law

PERSONAL BANKRUPTCY FILINGS AMONG YOUNG WOMEN ON THE RISE

Posted on February 15, 2011by Admin

A recent study from Insolvency Service Statistics has revealed an alarming trend in bankruptcy filings among women under the age of 24 has risen 10% in the past five years. The report states that the increase in the number of women declaring bankruptcy can largely be attributed to credit card debt and mounting mortgage or rent payments.

“This has been a big trend I’ve been seeing in my practice. Many of the young women that come into my office are not living extravagant lifestyles, they are having to take drastic steps because of a change in circumstances, whether it’s the loss of a job or a divorce,” says Timothy S. Kingcade.

As a single mom living in Miami, Frances Gonzalez knows just how quickly debt can pile up and become unmanageable. “By the time I was 18 I had five credit cards open. It adds up really quickly- having to put food on the table, buying things for my child, while at the same time I was going to school and working as a paralegal,” says Frances.

It wasn’t long before bills began to go unpaid and Frances began receiving harassing calls from debt collection agencies at home, at work, and on her cell phone. “The collection agencies even called my mom and dad. That’s when I knew I had to get help,” she said.

A friend at Frances’ work had referred her to Miami bankruptcy attorney, Timothy Kingcade. “Upon my initial meeting with Mr. Kingcade, he made me feel like I was his only client, going as far as to give me his personal cell phone number. Working in the legal profession myself, I don’t know of many attorneys that would do that. He put my mind at ease, and the creditor harassment stopped, immediately,” says Frances.

However, not everything went smoothly. After Frances received her bankruptcy case number, she had her car re-possessed three days later, which is illegal to do once the bankruptcy is filed. Within an hour she was on the phone with Mr. Kingcade and just two days later Frances was driving her car. This was a result of Timothy filing an emergency motion to retrieve her car. Mr. Kingcade held the car lender liable for damages, which included lost wages, bus fare from Homestead to Frances’ job in downtown Miami, and attorney’s fees. Mr. Kingcade even had a special clause put in the new auto agreement where they cannot repossess Frances’ car unless she is 3 months late, instead of just 1 month. The case was settled and Frances ended up being able to keep her car, with her payments cut nearly in half. Frances says she now has a fresh financial start and can’t believe how her life has changed as a result of Kingcade & Garcia, P.A.

Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy Kingcade in 1996. The firm represents clients throughout Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care.