Thousands of foreclosures are being scrutinized after employees at several major lenders approved thousands of foreclosure affidavits and other documents without proper evaluation. JP Morgan has suspended some 56,000 foreclosures after admitting some may have been authorized without proper review. Ally Financial, another major lender, suspended evictions in twenty-three states.
New York Supreme Court Justice, Arthur Schack sites “questionable practices” in a number of these foreclosure filings. To approve a foreclosure a lender must prove three elements: 1.) Proof of mortgage, 2.) owning the mortgage the day the case commences, and 3.) show there is a default by the borrower. The biggest problem Justice Schack states is proving ownership of the mortgage the day the case commences. Numerous problems have occurred as a result of sloppy paperwork with the assignments of these mortgages. This in turn, has caused problems for the bank, the borrower, and attributed to title problems with the new owner.
Andy Kroll, a reporter at Mother Jones, revealed that GMAC, a subsidiary of Ally Financial, relied heavily on what defense attorneys and critics call, “robo signers.” These employees sole job is to mass sign foreclosure affidavits. In GMAC’s case, depositions in Maine and Florida revealed that a robo-signer admitted under oath that he had no idea what he was signing, violating federal rules of civil procedure. It is required by law that an individual must have personal knowledge of what a foreclosure legal document says, which is now what is at the heart of the GMAC debacle.
The same law firm in Southeastern Florida deposed a similar employee within Chase Home Finance, opening the door for 56,000 of JP Morgan’s cases. This has caused many judges to go back and scrutinize banks that they feel utilized these questionable practices in pushing foreclosures through the system.
To read more about this story, please visit:
http://4closurefraud.org/2010/10/02/video-judge-arthur-schack-and-andy-kroll-on-foreclosure-fraud/
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.
Learn the Facts about Miami’s New Foreclosure System
With Miami having the largest number of foreclosure cases in the state, an estimated 72,000, it’s no surprise that a new system needed to be put in place to handle the influx of these cases. The circuit courts were given $862,053 by the Legislature to close 52,000 of these cases by June 30, 2011.
The new incentive has changed the way Miami-Dade will operate foreclosure cases. Circuit Judge Jennifer D. Bailey, the civil division overseer, is now hiring senior judges to strictly consider summary judgments and clear dockets. Once a case has gone through the review process and is ready for a summary hearing, it is added to the master calendar.
A year ago, the twenty-six circuit court judges were handling six times the normal amount of foreclosure cases received. Now any foreclosure filing after January 1, 2009 will remain with circuit judges and the five senior judges will review the 15,537 older filings.
This will take an immense amount of work and pressure off the circuit judges. The goal of closing 52,000 cases is a huge undertaking considering they only closed 24,000 this year. This new system has not come without controversy and criticism as many foreclosure attorneys fear it is about filling quotas.
To read more on the new system for foreclosure cases, please visit:
http://www.law.com/jsp/article.jsp?id=1202472282522
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.
Florida Legislature’s Proposed Answer to the Foreclosure Crisis
A recent article in the New York Times reported on the Florida Legislature’s new effort to cut the number of foreclosures throughout the State of Florida. Earlier this year, Florida provided $9.6 million in funding to set up “foreclosure-only” courts across the state. These courts would be staffed by retired judges to accommodate the record-setting number of foreclosures in Florida. The goal of the program, which began in July, is to reduce Florida foreclosures by 62 percent within a year.
However, this new program has come under much scrutiny. Lawyers representing troubled borrowers contend that many of the retired judges called in to oversee these foreclosure cases are so focused on cutting the caseload that they are unfairly favoring financial institutions at the expense of homeowners.
In the article, Chief Judge Victor Tobin in the 17th Judicial Circuit defends the new plan, saying that “There are more assets devoted to those three foreclosure divisions in Broward County than to any other division in the building in terms of case managers and that sort of thing to help the general public. The people who come in get fully, fully heard.”
Florida’s foreclosure mess is made even more complicated by what analysts and lawyers involved in the process say are “questionable practices” by some law firms that are representing banks. Such tactics, these people say, have drawn out the process significantly, making it extremely lucrative for the lawyers and more draining for troubled homeowners. Even a few South Florida law firms have come under such scrutiny regarding their questionable practices when handling the influx of foreclosure cases. Labeled as “foreclosure mills” in the article, often times these firms refuse to work with borrowers and are very aggressive about pushing cases through the courts, even when there are questions about the documentation.
Nevertheless, Florida law requires that before a financial institution can foreclose on a borrower, it must prove to the court that it actually has the standing to do so. Florida law also requires that banks argue their cases before a judge if they want to recover property from borrowers in default, and 471,000 such cases were pending in Florida at the end of July, according to the Florida State Courts administration.
The Florida Supreme Court has recognized the need to hire retired judges on a “temporary” basis and has ruled this as constitutional. However, with these “repeated and consecutive” foreclosures, these may not always qualify as “temporary” and could eventually be in violation of the Florida constitution.
To read more on this story, visit:
http://www.nytimes.com/2010/09/05/business/05house.html?pagewanted=1&_r=3
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.
Florida Foreclosure Filings are Down According to a National Study
The nation has seen a drop in foreclosures and Florida is feeling it, too! According to California-based RealtyTrac, an online site focused on distressed real estate, the number of Florida foreclosures has decreased by 8.7 percent in July. The counties of Tampa Bay have seen the largest annual drop at close to 24 percent.
In a national ranking, Florida is number three for foreclosure filings, close behind is Arizona at number two, and Nevada at number one. All three states have seen a significant drop in filing rates. California, placing number four, has seen a decrease of more than 54 percent.
To read more on some of the latest trends in foreclosure filings, visit:
http://www.bizjournals.com/tampabay/stories/2010/08/09/daily47.html?s=industry&t=printable
http://www.realtytrac.com
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.
-Timothy Kingcade
The Importance of Hiring an Experienced Attorney when Facing Foreclosure and President Obama’s Mortgage Rescue Plan Explained
Every state has different laws on foreclosure. In the State of Florida, you have only twenty (20) days to respond to a foreclosure notice. That is why it is imperative that you hire an experienced attorney that can help save your home or at least allow you to reside in it for another year if necessary.
Almost all mortgages in the State of Florida have the right of “reinstatement.” This means that, if at any time during the foreclosure litigation process the borrower comes up with the money for the late payments or can make a deal with the bank to cure late payments, legally the bank must dismiss the foreclosure action.
Today, many homeowners are unable to meet their monthly mortgage payments as low introductory rates (sub-prime) turn into the regular monthly interest rate (primary). As a result of the housing market crashing, many properties are no longer worth their original costs, leaving homeowners stuck with homes worth less than their actual mortgages. These have been labeled “underwater” homeowners. More than 15 million people are lumped into this category.
To turn things around, President Obama and financial delegates have come up with a foreclosure rescue plan to help the unemployed and “underwater” homeowners remain where they are and help stabilize the real estate market. The plan is to reduce the principal, rather than reduce interest payments or give other forms of aid. Mortgage payments will be cut to no more than 31% of monthly income for 3 to 6 months. Mortgages will also be reduced to reflect the current property values. Then the homes will be refinanced into the Federal Housing Administration (FHA).
The requirements to qualify for Obama’s Mortgage Rescue Plan include:
-Having secured your mortgage by January 1, 2009
-Having a primary mortgage of less than $729,500
-Must live on the property
-Must fully document income with tax returns and pay stubs
-Sign a financial hardship statement
-Go for credit counseling if total household debt totals more than 55 percent of income
Several issues have complicated the execution of this plan: namely, the cooperation between banks and investors. Because investors acquired most mortgages as security bundles during the housing boom, many are not willing to go lower. The banks and investors must agree and approve all loan restructurings for this plan to be successful.
To learn more about Obama’s Mortgage Rescue Plan, visit:
http://www.orlandosentinel.com/classified/realestate/foreclosure/orl-foreclosures-foreclosure-laws-story,0,5000373.story
http://www.neighborhoodlink.com/article/Homeowner/Obama_Loan_Mod_Plan_Explained
http://www.cnbc.com/id/2951098/New_Mortgage_Plan_Who_Qualifies_and_How_It_Works
http://www.washingtontimes.com/news/2010/mar/27/obama-foreclosure-plan-givesloan-break-jobless/
http://money.cnn.com/2010/03/25/news/economy/foreclosure_prevention_unemployed_underwater/index.htm
Many people feel extremely overwhelmed when they get sued for foreclosure–they move out of the house or sign the house over, not knowing that by hiring an attorney and fighting this action it is very possible to save the house, even without filing bankruptcy. 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.
-Timothy Kingcade
New Credit Card Laws Targeted to Protect the Consumer
After filing for bankruptcy, it’s important to remember that the day your case is closed is the day you can begin rebuilding your credit score, by adopting responsible spending habits, paying your bills on time and not applying for too much credit at once. You may think that living on a cash-only basis is a smart choice, but if you want to begin rebuilding your credit score fast, you have to take the plunge and allow yourself to open up new credit cards. A few recent laws have been enacted to protect the consumer and give you a better chance of attaining a good credit score.
On May 22, 2009 President Obama signed the Credit Card Accountability, Responsibility, and Disclosure Act to combat the unjust practices of credit card companies. This new law establishes principles necessary for consumers to get ahead, which include: bans on unfair rate increases and fee traps, plain, understandable language, accountability, and protection for students.
Additional Protections to the Consumer include:
- Consumers will no longer endure unfair and hidden spikes in interest rates.
- Consumers will have an adequate time period, at least 21 days, to pay a monthly bill.
- Deadlines, such as weekends and random monthly dates, are abolished.
- Institutions must receive the consumer’s permission when charging an account at its limit.
- Credit card companies must disclose account information in plain sight and plain language, i.e. how long it would take to pay off a balance and the total interest cost, if the minimum payment was made monthly.
- Credit card contracts are now made available online…keeping companies accountable for their terms and conditions.
- Consumer protection regulators must publish up-to-date findings and report misconduct.
As of August 22, 2010, the Federal Government is adding new rules to the Credit Card Act to create even more protection for consumers.
- Consumers can only be charge $25 in late fees, unless you have been late on payment in the past 6 months or the cost a credit card company acquires due to your tardiness justifies a higher fee.
- Late fees cannot be more than your minimum credit card payment
- No more inactivity fees, i.e. if you aren’t using your card, they cannot charge you
- No more double fees for single transactions.
- Explanation if they increase the APR.
However, even with the new laws, credit card companies continue imposing fees on consumers; labeling these “fees” by other names, now that more stringent laws are going into effect. The so-called “annual fee” is back. Companies will wave an annual fee if you purchase enough throughout the year; if not, the fee is tacked on, ultimately charging you for inactivity. Another fee to pop up is the foreign transaction fee. Anyone who has traveled abroad knows that card companies take a percentage for converting moneys. Now, regardless of what currency a transaction takes place in, if done overseas, they will charge you 2 to 3 percent. Cash advance fees are becoming larger. Additionally, companies are charging for paper statements. You can avoid this by paying your bills online.
To learn more about how to protect yourself from incurring hidden credit card fees, visit:
http://www.walletpop.com/blog/2010/07/21/the-latest-in-sneaky-credit-card-fees/
http://www.whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/
http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules2.htm
If you have any questions on this topic, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.com.
-Timothy Kingcade
Five Mistakes that can Ruin your Credit
Your credit score is one of the most vital parts of your financial life. Many people think that keeping your credit score in good standing is only important when it comes to being approved for a loan or credit card. However, it goes far beyond that. Your credit score can affect everything from insurance premiums to employment opportunities.
Below are a few mistakes that can cost you some major points:
1.) Closing old credit cards. It’s easy to assume that if you pay off your bills, cut up your credit cards and stop spending you will magically have good credit. However, good credit is built over time and with smart spending habits. When a credit report is run, points are given for the cards you have carried balances on the longest. Be strong and resist the urge to make large purchases on these cards, if you cannot afford to pay the balances off in full each month.
2.) Using up all your available credit. If a credit card company grants you a line of $5000, you should only use 20% of it. This would allow you to spend no more than $1000 on that particular card. Because the credit card companies report your balances to the credit bureaus monthly, you want the balances to be as low as possible. According to My Credit Group, the balance-to-limit ratio will ultimately have a huge effect on your credit score.
3.) Applying for too much credit. If you are filling out application after application because you are strapped for cash, keep in mind that credit card companies note all of these requests and consider them a red flag. Let there be 6 months between each credit card or loan application.
4.) Not paying late fees. When it comes to late fees, pay up. The longer you wait, the worse it looks on your credit report. Once you acquire a late fee charge, your inability to pay shows up on your credit report.
5.) Moving. Lastly, for those of you who are moving to a new location make sure you change your billing address immediately. Bills can become lost in the mail and even end up going to your old address. This can cause you to miss your payment due date, get stuck with late fees, and rack up additional charges. Paying all of your bills online can help avoid this.
Remember, it is possible to have a good credit score if you discipline yourself to spend wisely. Know your options when it comes to credit and use them to your advantage! For more information on ways to improve your credit score, visit www.mycreditgroup.com. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
-Bankruptcy Attorney Timothy Kingcade
Florida Supreme Court Enacts New Law to Clean-up Foreclosure Filings, But many Attorneys continue to ignore it
In an attempt to clean up careless legal mistakes and incomplete documentation submitted by attorneys in foreclosure cases, the Florida Supreme Court recently enacted a new law that requires the attorney or bank filing a foreclosure to verify that the allegations and paperwork are accurate when a residential property is at stake. A majority of the paperwork filed up to this point has been submitted incomplete or with careless mistakes made, resulting in time and resources being wasted by the courts.
This issue is of particular importance in South Florida, where it seems many homeowners can’t seem to catch a break when it comes to foreclosures. According to recent numbers from RealtyTrac, foreclosures in South Florida have grown 71 percent in the first quarter compared to the same time frame in 2009. These continuing problems with the foreclosure process could affect the speed at which the housing market recovers, slowing the process of reselling properties and stabilizing the market.
However, a stand still has occurred recently in these cases. The attorneys of large foreclosure firms are choosing to ignore the ruling, claiming the decision from the Supreme Court states “not final,” while Florida judges and defense attorneys fight for the section of the decision that states “shall become effective immediately upon the release of this opinion”. Well, that opinion was released back in February.
The bottom line for South Florida homeowners, who are in the middle of this, is when a foreclosure is filed: Do NOT just hand over your property. Rather, make sure the bank or lender retaking your home has the proper paperwork to show for it. Finally, hire an experienced attorney. 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. Web site at www.miamibankruptcy.com.
To read more on this story go to:
http://www.heraldtribune.com/article/20100601/ARTICLE/6011046/0/NEWS?p=4&tc=pg
Jury Awards Man $1.5 M after Debt Collection Agency Leaves Harassing and Vulgar Voicemail Messages
The largest verdict of its kind was awarded to Texas resident, Allen Jones after he received a series of racist and vulgar voicemail messages from Advanced Call Center Technologies (ACT) in August of 2007. Advanced Call Center Technologies (ACT), a Pennsylvania debt collection agency began making these calls as early as 6:30 a.m. and would continue till 11:00 p.m. More egregious was the amount in question, which was a mere $200 that Jones had already paid in full. Eight messages were cited in the case and when brought to court the jury sided with Jones, awarding him $1.5 million in punitive damages, $143,000 in attorney’s fees, and $50,000 in mental anguish.
There are several rules and regulations when it comes to collecting debt: no calls before 8 a.m. and after 9 p.m. unless agreed, no false claims, no harassment, and no unfair practices. This verdict should come as a warning to debt collection agencies that are practicing corrupt collection practices. There are strict laws against this that protect the people.
To read more on the Allen Jones story go to :
http://www.aolnews.com/nation/article/vulgar-voice-mails-cost-debt-collection-agency-15-million/19500256
For more information on your rights as a consumer, visit:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
If you have any questions on the topic of bankruptcy or feel you have been a victim of corrupt collection practices please contact me, Bankruptcy Attorney Timothy Kingcade at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.com.
-Timothy Kingcade
Morality of Bankruptcy
Filing for bankruptcy has often been linked with a social stigma for many individuals, often causing those who are on the verge of filing, personal guilt, fear about the future, and morality struggles. But in fact, filing for bankruptcy can often be an economically wise choice for many Americans who have found themselves in financially overwhelming situations. A recent article in the Minneapolis Star-Tribune reported that over 60 percent of all Americans who file for bankruptcy have done so as a result of excessive medical bills. This comes as no surprise to anyone who has had difficulty qualifying for health insurance or was unable to afford their monthly premiums.
At my practice, I have seen a significant increase in the number of senior citizens filing for bankruptcy as a result of having to put their monthly prescriptions on credit cards. Many of these individuals are already on fixed financial budgets and Medicare/Medicaid applies only after a certain amount is covered out of pocket. The article also noted that the average Chapter 7 bankruptcy filer has an income of only $20,000 per year, which isn’t exactly a lot of money, and can easily disappear when one is faced with an unexpected financial burden. Job loss and divorce also play a huge role in bankruptcy filings. Along with medical costs, these two factors account for the vast majority (about 90 percent) of all bankruptcy filings.
The bottom line here is that bankruptcy exists to protect those who truly need its protections. Without it, the American economy would likely not flourish with as much innovation as it does today—thanks to the security that bankruptcy provides, entrepreneurs can take risks that they might not otherwise have.
Filing for bankruptcy is emotionally and mentally exhausting. The day you hire our firm, we will contact your creditors to stop the harassment. We offer free office consultations and will listen and evaluate your individual situation, taking immediate action to help get you back on your feet. If you need relief from creditors calling and are considering bankruptcy as an option contact our experienced and compassionate team of attorneys today for a free consultation at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at www.miamibankruptcy.info/.
