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Homeowners more behind on payments before foreclosure

Posted on February 12, 2011by Admin

It can take a long time for the foreclosure process to move from the time a lender issues a foreclosure notice to the time the homeowner is evicted. But the time between the homeowner’s first missed payment and that eviction is even longer. Last year, homeowners across the country were an average of 507 days behind on payments by the time foreclosures were completed. That is more than 100 days longer that the average in 2009.

So why did the foreclosure process take so much longer last year than the year before? A senior vice president at Florida’s Lender Process Services Inc. has a couple of theories.

First, he says that lenders waited longer to issue foreclosure notices in 2010. Because of the “sheer volume of loans” in default, it took Florida lenders an average of 349 days of a homeowner being delinquent before the foreclosure notice was issued. That is nearly a year of being behind on payments before the lenders took any actions toward foreclosure.

Also, the same individual said that lenders are exercising an “abundance of caution” after the robo-signing fiasco. Lenders want to be sure that they do everything properly before evicting homeowners. This is hopefully leading to lenders showing more respect for homeowners’ rights.

These factors both help explain why homeowners were delinquent 25 percent longer before eviction in 2010 than they were in 2009. Not only are lenders waiting longer to issue foreclosure complaints, the actual foreclosure process itself is taking longer.

Source: Bloomberg, “U.S. Homeowners in Foreclosure Process Were 507 Days Late Paying,” John Gittelsohn, 7 Feb 2011

If you have any questions on the topic of foreclosure please feel free to contact foreclosure defense attorney, Timothy Kingcade at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

Timothy Kingcade Posts

8 Keys to 2011’s Mortgage Market

Posted on February 12, 2011by Admin

The U.S. housing market has been hit hard by what’s been referred to as the worst economic downturn since the Great Depression. Mortgage rates dipped to lows that hadn’t been seen in decades. Now, the housing market is still struggling and mortgage rates are on the rise.

Here are 8 predictions for 2011’s Mortgage Market:

1.) The new Consumer Financial Protection Bureau will start operating. Confusing, unclear and seemingly conflicting documentation has been implicated in the mortgage-market mess, and a push for more explicit yet simpler forms for consumers to review and sign are thought to be the bureau’s top priority.

2.) Fannie Mae and Freddie Mac will change . . . maybe. Reforming the government-sponsored enterprises (GSEs) has been an on-again, off-again, crusade for the last couple of administrations. There has been some talk of perhaps a five-year wind-down plan for the GSEs, some discussions of separating their “public” function of securitizing mortgages from their “private” investment portfolios, and both have proved useful to politicians at various times.

3.) The economy improves. If you want to know what will happen to mortgage rates in 2011, watch what happens to the economy. The labor market recovery is expected to gain momentum as the year progresses, but unemployment will remain stubbornly high for perhaps years to come. With that being said, continual but gradual improvement seems likely. As the economy finds firmer footing, so will mortgage rates.

4.) Homebuyers return in greater numbers. Without a competitive private market, the restrictive standards put in place by the GSEs over the last couple of years will continue to be the only game in town and will continue to limit access to the cheapest mortgage credit.

5.) The “distressed” real estate market improves. Recently, there was a slight improvement in the number of “underwater” homes that occurred not because of any gains in home prices, but rather because a rise in foreclosures produced a final “cure” that loan modifications did not.

6.) A “soft demise” for the Home Affordable Modification Program. By now, it should be fairly clear that the Obama administration’s goal of saving 3 million to 4 million homeowners from foreclosure by 2012 was wildly optimistic. By the program’s end, we may not even make half that number, but the administration is claiming some success in shaping and focusing the loan servicing industry to deal with borrowers in crisis, fostering more private and lasting modifications.

7.) Mortgage rates remain favorable. Borrowers will again have to become accustomed to rates in the low- and mid-5% range for 30-year fixed loans. Still, much of the year should continue to feature rates that rank among the best seen in a generation or more, even if they don’t test record lows. The low mortgage rates of 2010 came as a result of multiple financial panics and investor fears of more losses, and to wish for their return is to hope for renewed economic catastrophe.

8.) The Federal Reserve’s Quantitative Easing 2 (QE2) program ends. Initiated in November 2010, the Fed’s program of purchasing Treasury securities in hopes of fostering lower interest rates has had the exact opposite effect, and interest rates have risen off their panic-level bottoms. This is partly due to an improving economy and partly due to the expectation that the Fed’s moves will further spur economic growth in 2011. We’ve come to believe that the Fed is using the program to buffer the market, keeping market interest rates from rising more quickly than it would like.

To read more on this story visit:
http://money.msn.com/home-loans/8-keys-to-2011s-mortgage-market-hsh.aspx

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. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

Misery in Miami: Forbes ranks the Magic City 2nd most miserable

Posted on February 9, 2011by Admin

There is no question that Miami has high unemployment and foreclosure rates. Now, those two issues have led Forbes.com to name Miami as the second most miserable city in the United States.

The Misery Index (which does really exist) looks at many factors, including home prices, foreclosure rates, unemployment and even the local sports team’s record. Last year, Forbes.com listed Miami as the sixth most miserable city. This year, we moved up on that list, but managed to avoid the top spot.

Instead, Stockton, California, was listed as the most miserable city for the second year running. According to Forbes.com, “The good weather and lack of state income tax” were our saving grace. But for those two factors, Miami would have come in as the number one most miserable city in America.

NBC Miami speculated that in addition to high unemployment and our foreclosure problems, the crime rate and unscrupulous politicians accounted for Miami’s second spot ranking. The financial struggles related to the unemployment and foreclosure issues certainly contribute to the unhappiness seen in Miami.

Unemployment and foreclosure may be two of the primary sources of discontent here, but they are not unsolvable problems. Solutions do exist for individuals who are facing mounting debt after being laid off or those who have been threatened with foreclosure. Bankruptcy and other debt relief options can help individuals overcome the emotional and financial struggles related to overwhelming debt.

Source: NBC Miami, “Les Miserables: Miami High On Depressing Cities List,” Todd Wright, 2 Feb 2011

Bankruptcy Law, Credit, Timothy Kingcade Posts

Florida consumers carry 3rd highest debt in country

Posted on February 9, 2011by Admin

Over the past few months, we have heard a lot about Americans tightening their financial belts and using extra income to pay down debts. And for some, the post-holiday period is about paying off those Christmas bills. However, new numbers released by Equifax show that many consumers, especially those in Florida, are still carrying high credit card balances.

Equifax monitors credit throughout the country. The group’s recently released numbers indicate that consumers in Florida, California and Texas are maintaining higher credit card debt levels and people in other parts of the country. While these states face some of the toughest budget issues in the nation, so do their individual residents.

According to Equifax, Florida residents have $47.6 billion of collective credit card debt. This is the third highest total in the country. California ranks highest with $90.6 billion in debt, and Texas is number two with $48.8 billion in credit card debt. These states still have “a lot of debt to tackle,” as one senior vice president at Equifax put it.

Many individuals would like to pay down their credit card debt, but it seems that each month brings new financial challenges that stand in the day of reducing debt. When credit card debt becomes overwhelming, chapter 7 bankruptcy may be a good debt relief option. In this form of debt, consumers who cannot meet their financial obligations have an opportunity to discharge unsecured debt such as credit card bills.

CreditNet, “Many Americans still face serious credit card debt problems,” Thomas Astery, 28 Jan 2011

Bankruptcy Law, Credit, Timothy Kingcade Posts

Old Video Rental Late Fees Could Impact Credit Scores

Posted on February 4, 2011by Admin

Hollywood Video and Movie Gallery filed for bankruptcy nearly a year ago. At the time, thousands of movie renters owed the company a few dollars here or there for late fees. Now, the collections company working for the video chain has begun filing negative reports to credit agencies regarding these “outstanding debts.”

There are many things people expect to impact their credit scores one way or another, but video late fees are not one of them. At a time when many people are starting to get back on their feet, a black mark on their credit score could be very problematic. That ding to the credit report could prevent them from refinancing or getting other necessary credit.

So what is really going on in this situation? Creditors and their collections agencies do have the power to report loans that have been defaulted on, but they are generally required to notify the consumer before they do so. Many question whether or not video renters were notified before the collections company reported the debt to credit agencies.

The managing member of National Credit Solutions – the debt collection agency working with Movie Gallery and Hollywood Video – says that Movie Gallery said the company notified customers with outstanding fees before National Credit Solutions was told to report the debts. But customers say they were not notified of the situation.

Now that customers across the country have complained, Movie Gallery has asked the collections company to withdraw the negative credit reports and notify customers of the debt by mail. However, National Credit Solutions says it will be re-filing the negative credit reports if customers do not respond to the new notification.

Source: NPR, “Montana Files Lawsuit Over Video Late Fees,” Associated Press, 26 Jan 2011

Bankruptcy Law, Credit, Timothy Kingcade Posts

Credit card company tries to collect on old debts

Posted on February 4, 2011by Admin

For people struggling with debt, receiving letters demanding payment is a frequent occurrence. But for individuals who believed their debt was “charged-off,” receiving such a letter can be a shock, especially if the creditor is now demanding payment of many years of interest.

This is the situation one couple found themselves in recently. After working hard to pay off outstanding debt, the couple thought they were positioning themselves to rebuild their credit score. Then they received a letter from Capital One requesting payment for a $2,000 credit card debt from ten years ago. The company also added interest for the past decade, and they are claiming the couple now owes more than $5,000 for that debt.

The couple has not received bills or requests for payment since 2000, and their financial counselor did not see any outstanding debt with Capital One. The couple reasonably believed that the company had written the debt off, and they no longer owed anything.

In fact, that’s true. The outstanding $2,000 plus interest is not collectible. The state in which the couple lives has a statute of limitations for collecting debts, so Capital One cannot sue the couple over this debt. But the letter demanding payment nearly tricked them into paying money they do not technically owe anymore.

According to Capital One, the company sent out this kind of demand letter to comply with a new federal regulation. Technically, creditors must send out notifications if they are still charging interest on old debts. However, the company is likely using this as an opportunity to try to convince debtors to pay back money that they no longer owe.

It is important for individuals who have received similar letters to know that they are not in danger of facing a lawsuit to collect that payment. The company can send demand letters, but they cannot legally take any action other than asking for payment.

Source: LA Times, “Capital One dredges up decade-old, charged-off debt,” David Lazarus, 1 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.

Foreclosures, Timothy Kingcade Posts

Florida Churches Join Homeowners in Foreclosure Crisis

Posted on January 26, 2011by Admin

Much of the recent news about Florida foreclosures has centered on homeowners facing foreclosure. But little has been said about the impact of the foreclosure crisis on businesses and religious institutions. Recently, the Wall Street Journal reported on the worrying increase in foreclosures on buildings owned by churches.

Florida and other states have seen a significant rise in the foreclosure rate for all properties, including churches and other buildings used for religious purposes. Between 2006 and 2008, fewer than ten religious groups lost property because of foreclosure. Between 2008 and 2010, nearly 200 faced that fate.

Many churches, like individual homeowners, became caught up in the real estate boom. They expanded too quickly and purchased property with high mortgage payments. That worked well for a short period of time. But now the economic recession has caused church attendance to decline. Those who still attend church are tithing less, which leaves the churches with less operating income.

Without the consistent source of weekly income, churches that once had plenty of money to keep up with the property payments are finding themselves behind on payments. As property values decline, those same churches are also underwater, owing more than the properties are worth.

As one pastor said, “I just told the bank to take [the property].” That pastor had tried to negotiate with his lender. He had tried to refinance, but because he owed more than the property was worth, refinancing was not an option. At the end, he felt that “there’s not really another choice but to walk away.”

This is the same situation that many individual homeowners have found themselves struggling with recently. Anyone who is facing foreclosure should know that they do have options. An experienced bankruptcy attorney can help you explore your options and make decisions that are in your best interests.

Source: Wall Street Journal, “Churches Find End Is Nigh,” Shelly Banjo, 25 Jan 2011

Foreclosures, Timothy Kingcade Posts

Major Ruling Throws out more than 10,000 GMAC Foreclosure Cases

Posted on January 25, 2011by Admin

A recent ruling in Maryland has thrown out more than 10,000 foreclosure cases managed by GMAC Mortgage, due to affidavits in cases signed by Jeffrey Stephan, the infamous GMAC “robo-signer,” who attested to the authenticity of foreclosure documents without any knowledge about them, as well as signing other false statements.

The University of Maryland Consumer Protection Clinic and Civil Justice, Inc. filed the class action lawsuit, arguing that any case using Jeffrey Stephan as a signer was illegitimate and must be dismissed. In court last Friday, GMAC agreed to dismiss every case in Maryland relying on a Stephan affidavit. They can re-file foreclosure actions on close to 10,000 homes, but only at their own expense, and subject to new Maryland regulations which require mandatory mediation between borrower and lender before moving to foreclosure. Civil Justice and Consumer Protection Clinic also want any cases with affidavits from Xee Moua of Wells Fargo, who has also admitted to robo-signing, thrown out.

Now GMAC has to go back and basically file the entire case all over again, meaning they have to give notice of foreclosure to the borrower, engage the borrower in modification options, and run through the whole process from the beginning. They cannot use the shortcut solution, thanks to the class action suit filed.

To read more on this story, visit:
http://news.firedoglake.com/2011/01/16/10000-gmac-foreclosures-stopped-in-maryland/#

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.

Foreclosures, Timothy Kingcade Posts

Banks Drop Hundreds of Foreclosures in Southwest Florida

Posted on January 24, 2011by Admin

According to local attorneys and court records, banks in recent weeks have dropped hundreds of Southwest Florida foreclosure lawsuits in Lee, Collier and Charlotte counties. Opinions vary sharply on whether this means banks are taking a breather before re-filing with stronger evidence, or just giving up for good on hopelessly flawed cases.

The exact amount of foreclosures being dismissed have not been calculated, but eight voluntary dismissals were filed last Tuesday alone by seven different banks including Bank of America, one of the largest filers of foreclosures in the area. Most of the mortgages in dispute were sold to Wall Street and sold in bundles to investors as mortgage-backed securities. However, so many mistakes were made in the process it’s unlikely the banks can win those cases.

This recent wave of voluntary dismissals may be a result of a Massachusetts Supreme Court ruling on January 7th upholding a judge’s decision two foreclosures were invalid because the banks didn’t prove they owned the mortgages, which were said to be improperly transferred into two mortgage-backed trusts.

Bankruptcy Law, Credit, Timothy Kingcade Posts

5 Rising Costs to Watch Out for in 2011 as You Plan Your Budget

Posted on January 19, 2011by Admin

Budgeting: It is a word that is on everyone’s mind this year from federal and state government officials to individual households. Consumer confidence is at an extreme low during this economic recession as individuals attempt to get control of their finances, save money and reduce debt or even looking for ways to avoid filing for bankruptcy. “Consumers are not throwing caution to the wind since there are tremendous headwinds, such as a high and persistent unemployment rate, a poor housing market, tight credit conditions, and increasing energy costs,” explained one economist with IHS Global Insight. Although experts assure us that inflation is definitely under control, there are a few costs that will continue to rise in 2011 that will have a large affect on individuals. Five individual increases rise to the top of the list of everyday goods and services:

Food is one of the most essential needs in a household, but in 2009, the cost of groceries went up approximately 1.5 percent and is not expected to slow down. Major food producers have even begun raising food prices after dropping several discount options. Not only have food producers raised their prices, but 60 percent of restaurants surveyed by Nation’s Restaurant News said customers should expect a cost increase next time they visit.

You may have already noticed that it is getting more expensive to fill your car once again after the cost of gas seemed to waiver around a somewhat fixed point for a while. According to the Consumer Price Index, the overall cost of energy had already risen by 7.7 percent by the close of the year.

Citizens of every state should expect a change in taxes as state and government officials look to get their own budgets under control. One of the quickest ways is to increase taxes on products like cigarettes or even bottled water.
Major television and telephone service providers like AT&T are reportedly expecting to raise their monthly premiums.

And lastly, banks have had to restructure their business models as government regulations have forced them to find new ways to generate income. Several banks have already begun to consider raising fees associated with ATMs or checking accounts.

Source: The Wall Street Journal “The 7 things you’re paying more for than you think” Jennifer Waters 1/19/11

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.