Car repossessions have reached a figure not seen in over a decade. According to Fitch Ratings, the number of subprime auto borrowers who were at least 60 days past due on their car payments increased to 5.67 percent (5.67%) from 2.5 percent (2.5%), which was the figure reported in April 2021.
Numbers like these have not been seen since January 2009 when 5.05 percent (5.05%) of subprime car borrowers were at least 60 days late on their car payments during the peak of the Great Recession.
The U.S. Supreme Court will be hearing arguments this week over two legal challenges brought against President Biden’s student loan forgiveness plan. The decision from these challenges could make or break Biden’s overall plan for loan forgiveness, affecting tens of millions of American borrowers.
Since President Biden made his initial announcement regarding his loan forgiveness plan, his policy has faced six legal challenges. The two challenges before the high court now have consolidated these suits. One legal challenge has been brought by six states, including Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina. The other challenge has been backed by the Job Creators Network Foundation, a conservative-based advocacy group.
Mortgage delinquencies slightly increased from April to May 2022, but Florida’ mortgage delinquency rates have increased more than the national average. Nationwide, one in every 4,549 housing units had a foreclosure filing in May 2022, according to a recent report issued by Knight Data & Analytics. Florida led all 50 states with a high rate of one in every 2,788 housing units.
The national delinquency rate decreased in May 2022 to a low of 2.75 percent. However, Florida’s delinquency rate stayed at a consistent 2.0 percent. Lenders initiated foreclosure proceedings on 22,099 properties in May 2022. While this number may be down one percent from the previous month, it is up 274 percent from one year ago.
The COVID-19 pandemic has pushed many Americans into financial struggles. The disruption to employment, childcare, and school routines crippled the economy and forced millions of women and families to the financial brink. While many have bounced back, others continue to struggle.
According to a new survey from Forbes Advisor, 75 percent of American consumers have reported missing payments or making a late payment at least once on their credit cards due to the COVID-19 pandemic.
Foreclosure filings reported in January 2022 were up by nearly 30 percent from a month prior and up by over 139 percent from a year ago, according to figures from the U.S. Foreclosure Market Report. A total of 23,204 U.S. properties were reported as having foreclosure filings.
The fact that foreclosure filings were on the rise does not come as a surprise for financial experts who have been keeping an eye on the housing market. Normally, foreclosure filings slow down around the holidays, picking up again after the first of the year. However, this year, the filings were a little more than in previous years, showing more of a spike in filings than a slow increase.
Many student loan borrowers seeking relief from their student debt burden prior to payments resuming in 2022 have found themselves on the receiving end of student loan scams. In fact, a number of consumer protection firms across the U.S. have issued warnings regarding the increase of certain student loan debt relief scams. It is important that all consumers are aware of what red flags to look for when being offered financial assistance towards their student loan debt.
Borrowers were given some relief during the COVID-19 pandemic with federal student loan repayments being paused since March 2020, along with federal student loan interest being halted during this time. However, federal student loan payments are scheduled to resume in February 2022, meaning that millions of borrowers will be required to pay on their student loan debt for the first time in over a year. This fact has many borrowers panicking and trying to figure out how to either continue paying on their debt or find relief wherever they can find it.
Student loan relief scams are nothing new. In 2021, the Federal Trade Commission (FTC) issued millions of dollars in refunds to individuals who fell victim to student debt scams. As of 2017, it is estimated that $95 million has been paid to student loan fraud victims. As a result, financial experts predict that even more fraud reports will be coming in 2022.
One of the biggest warning signs borrowers should look for when communicating with an entity claiming to provide debt relief to student loan borrowers is when the person on the other end of the phone requests the caller’s student loan login information or his or her Social Security number. While their request may seem legitimate, providing this information could open the consumer up to having their student loan accounts hacked, also allowing the scammer to create falsified documents with this information and defraud the consumer even further.
The information being requested is often referred to as personal identifiable information or PII, and it can include the consumer’s Social Security number, driver’s license number, banking information, and credit card numbers. Providing this information allows the scammer to hack the consumer’s identity.
Another sign of a scam occurs when the alleged debt relief company requests money up front before providing a service. If a company is requesting the person pay a fee before even beginning the process of negotiating on a debt, this is a major red flag that indicates the company may not be legitimate.
Additionally, if the student loan debt relief company advertises their services on social media or reaches out to the consumer directly through cold calling, this could be another sign of a potential scam. If a consumer speaks with a company who has contacted him or her directly regarding debt relief, it is imperative that he or she does the proper research to ensure that the company is legitimate. A general Internet search of the company on reputable sources should be able to help the person ascertain whether a scam is involved.
Please click here to read more.
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.
Homeowners throughout the country have struggled with staying afloat and remaining in their homes during the COVID-19 pandemic. With no immediate end in sight to the pandemic, it appears as if that problem will continue, especially those in the 55 and older age group.
The U.S. Census Bureau reviewed household statistics through its biweekly Household Pulse Survey to see how homeowners are faring with remaining current on their mortgage obligations. Their most recent study covered the period of September 1 through September 13, 2021. According to the Census Bureau, 1.7 million homeowners ages 55 or older were reportedly behind on their mortgage payments. Of these 1.7 million homeowners, 277,000 of them said that the possibility of facing foreclosure was likely or very likely for them.
Bankruptcy filings leveled off last month, according to figures from technology company, Epiq. The company compiled filings through their AACER bankruptcy program which showed that in the month of August, 32,225 new bankruptcy cases were filed, including Chapter 7 and Chapter 13 consumer bankruptcy cases. This figure is down slightly from the 32,391 reported in July 2021.
Despite the fact that consumer bankruptcy filings have decreased, commercial bankruptcy filings have increased approximately one percent from July 2021 with 1,724 cases filed.
Student loans have been at the forefront of the COVID-19 relief offered through the federal government. The biggest source of relief came in the moratorium on federal student loan repayments issued by the Biden administration and was extended through the end of 2021. However, this moratorium is expected to end January 31, 2022, leaving many student loan borrowers left to wonder what is next.
It is estimated that $1.5 trillion in student loan debt is now owed collectively by U.S. student borrowers. Therefore, these measures have widespread effects for many American consumers.
The U.S. Supreme Court ended the pandemic-related federal moratorium on residential evictions imposed by President Biden’s administration. This eight-page decision effectively ends a debate that has divided party lines for months now during the COVID-19 pandemic. The ruling came down in a 6-3 decision, the court similarly divided along party and ideological lines.
The eviction moratorium was declared by Congress at the start of the pandemic. However, Congress’s moratorium expired in July 2020. The CDC then extended it by issuing a series of moratoriums under a 1944 law. The moratorium has consistently been extended, giving tenants and homeowners an opportunity to remain in their homes.
Landlords have consistently fought the moratorium, arguing that the longer it has been extended, the more they have suffered financially without any legal recourse.
The majority opinion stated that they believe the Centers for Disease Control and Prevention (CDC) exceeded their authority. They claim the CDC has relied on a statute that is decades-old that authorizes the CDC to implement emergency measures, such as fumigation and pest extermination, not a nationwide months-long moratorium on evictions.
