Tag: Bank

Bankruptcy Law, Debt Relief, student loan debt, Student Loans

Student Loan Borrowers Diagnosed with Cancer Still Waiting for Promised Relief

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In September 2018, President Donald Trump signed a bill into law, allowing student loan borrowers who have been diagnosed with cancer to delay their federal student loan payments. This new law was created to allow these individuals to focus on their treatment and not their student loan obligations through the course of their medical treatment and six months afterward. However, just nine months after the law took effect, borrowers who have requested this deferment are still waiting for approval.

The delay seems to be due to the U.S. Department of Education not yet providing student loan providers that administer its federal student loan programs an official application through which qualifying borrowers can apply. While the law may be in effect, service providers have no way to implement it.

The Department of Education insists that they are taking steps towards resolving this problem and creating an application for the cancer deferment. However, many borrowers are questioning why this was not done previously. As of January 2019, the Department of Education asked that the Office of Management and Budget conduct an emergency review and approval of the cancer deferment form created.

The Department of Education is also requiring a 60-day comment period on the proposed form, which is delaying the process even further. With cancer patients, time is of the essence. Many consumer advocates question why the comment period was not shorted to 30 or even 15-days.

Student loan servicers are offering temporary forbearances for borrowers who are seeking the cancer deferment. However, forbearance does not stop interest from accruing on the debt while payments are paused. Deferment, on the other hand, puts payments on hold while pausing interest from accruing, as well.

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For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Credit, Timothy Kingcade Posts

10 Factors that Make You ‘Unmortgageable’

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Nearly one-fourth of those who apply for a home loan are denied, according to the Federal Reserve. As a result of the Housing Crisis, it has become extremely difficult for borrowers to obtain mortgages. Below are ten factors that can put your mortgage hunt in jeopardy:

1. You are self-employed. If you are self-employed, two major issues arise when you are trying to obtain a mortgage. The first is that the income you earn from your business can be very unsteady. These fluctuations make you appear to be a risk to lenders. The second issue is that documenting small business income is more difficult and most lenders require two years of proof of income to qualify for a mortgage.

2. You have a subpar credit score. The average U.S. credit score is now 750. This is up from the 720-average a few years ago. You can get a mortgage with a score under 620, however the rates and fees will be very high.

3. You do not have enough money for a down payment. Lenders are now requiring that borrowers put a substantial amount more down, than before the housing crisis. If you do not have enough to put down, you may look too risky to lenders. Some down payments are as high as 15% to 20%; however, if you qualify for an FHA loan you may only need to put between 3.5% and 5% down.

4. You are new to the housing market. Many lenders now require borrowers to have at least a two-year housing history. However, this can include verifiable rent payments. If you are a recent college graduate, a rental history may not be an issue to your lender.

5. You are a new employee. Many lenders require borrowers to provide a two-year employment history in the same field of work before they will issue a loan. This is the result of the high unemployment rates over the past few years.

6. Your annual income is too low. If your monthly debt payments make up 45% of your gross monthly income, most lenders will see you as a risk. Any extra debt will decrease the likelihood that you will qualify for a loan.

7. You have applied too often. Contacting too many lenders can dictate the outcome of your qualification for a mortgage loan. Numerous loan applications can pull down a credit score. However, if you have applied within a week or two of each other, these inquiries should not affect your score.

8. You have too much debt. Lenders add up all of your debt including: auto payments, credit cards, student loans, etc. If your debt is substantial, many lenders will deny your mortgage application. Even if your student loans are in deferment, those balances are not always removed from your debt-to-income ratio.

9. You just made another major purchase. Beware of large purchases if you are planning to purchase a home within the next few months. If you have recently purchased a car, this can impact the likelihood that you will be approved for the mortgage.

10. You picked the wrong bank. The bank you choose as your lender can affect whether or not you get the mortgage. Larger banks will likely scrutinize you more than smaller, local banks.

To read more on this story visit: http://realestate.msn.com/-what-makes-you-unmortgageable#1

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.