foreclosure attorney Archives - Page 3 of 9

Credit, Foreclosures, Timothy Kingcade Posts

10 Reasons You Are Not Refinancing

Posted on March 7, 2013by Admin

Interest rates have lingered at 60-year record lows for some time now, allowing millions of homeowners to refinance their mortgage loans. Interest rates have declined with such consistency that thousands of homeowners have refinanced more than once. However, many homeowners are still hesitant to do so, below are ten possible reasons why:

1. Credit Score: Whether you are refinancing your home or buying a home, mortgage lenders focus on your credit score. You will need a score of at least 740 to get the best interest rate possible. If your current credit score is low, you can try to refinance with the Federal Housing Administration (FHA). The FHA has a minimum credit score requirement of 580.

2. Equity: Many homeowners have not recovered equity lost when home prices tanked six years ago during the housing market crash. In the past, homeowners with little equity did not possess much bargaining power; however, those with little or no equity may now have the advantage. The government’s Home Affordable Refinance Program (HARP) was designed to help underwater homeowners refinance their mortgages. The expansion of HARP 2.0 means that there are no underwater restrictions to qualify.

3. Mortgage Insurance: Homeowners who put less than 20% down when they bought their homes are required to pay lender’s mortgage insurance. If you have been told that you cannot refinance because of mortgage insurance, this is not true. It may be more difficult, but not impossible. You can qualify for HARP whether you pay mortgage insurance or not.

4. Debt-to-Income Ratio: Many homeowners have been forced to rely on credit cards over the past few years, as a result of the recession. Your debt may have piled up to the point that your debt-to-income ratio is too high to refinance. Your best bet is to focus on paying down your debt before trying to refinance.

5. A Low Appraisal: If your appraisal was lower than you anticipated, it is possible you will be rejected for a refinance. However, a low appraisal does not mean that your property is not valuable. You may need to challenge the low appraisal or renegotiate the deal with your lender.

6. You Think You Are Too Old: If you are retired or close to retirement, you may think refinancing is not worth the trouble. Before ruling out refinancing your mortgage, look into shorter-term loans that might be better for you.

7. Low Income: Even if you are making less money than you were at the time you bought your home; your lender will take into consideration that you have managed to keep current on your home loan. You may also want to look into HARP 2.0, which requires proof of employment and proof that you are making your mortgage payments.

8. Cannot Afford It: Refinancing fees cost approximately 2% of your loan amount. The closing costs, appraisal fees and credit checks will likely cost you a few thousand dollars. Also, beware of “no-cost” refinancing. Lenders that offer these deals will charge you a higher interest rate.

9. Unable to Document Income and Assets: You may think as long as both, your credit score and home value are in check, you can get approved for a refinance. However, you will need proper documentation of your income, assets, deposits and tax forms. If you cannot provide this paperwork, your refinance will likely be rejected.

10. Not Worth the Trouble: Refinancing your home is not a fun or easy experience. Many homeowners today avoid refinancing simply because it is not worth the trouble. Rather than ruling out refinancing altogether, look into streamlined programs that provide a simple and quick refinancing option.

To read more on this story visit: http://realestate.msn.com/10-reasons-youre-not-refinancing#1

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. 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, P.A. at www.miamibankruptcy.com.

Credit, Foreclosures, Timothy Kingcade Posts

Zombie Foreclosures: Debt that Won’t Die

Posted on February 27, 2013by Admin

There is a new foreclosure trend surfacing in the housing market called “zombie foreclosures.” This is where homeowners move out of homes after receiving notice of foreclosure and find out months or even years later that either: the auction never took place or the bank never transferred the deed. If this occurs, the borrower is technically still the owner and still owes property taxes and homeowner’s association fees. Since the housing market crashed in 2008, there are nearly two million foreclosures that have been lingering in the court system but have never completed the foreclosure process.

Analysts estimate that there are tens of thousands of zombie foreclosure cases. Typically, zombie foreclosures occur in low-income areas because the banks have had difficulty selling the properties in these areas. As a result, the banks delay actually taking over the deed to avoid paying property taxes. If this happens to a borrower, it can take years before they find out they still technically own the property. This has been extremely damaging to borrowers who are already suffering, financially.

A number of recent lawsuits have been filed against banks for faulty foreclosure practices. If you find yourself in a similar situation, you should contact a foreclosure defense attorney immediately. You should also contact a community advocacy group such as NeighborWorks America or NCRC.

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.

Credit, Foreclosures, Timothy Kingcade Posts

Foreclosure Filings in January Fall to Lowest Level Since 2007

Posted on February 19, 2013by Admin

Foreclosure filings in January 2013 fell to its lowest level since April of 2007. According to RealtyTrac, notices of default, scheduled auctions, bank repossessions and other filings fell to 150,864. Altogether, these account for a 7% decline from December 2012 and a 28% decline from January 2012. New foreclosure filings have fallen to the lowest level since June 2006. According to RealtyTrac spokesman, Daren Blomquist, the peak of the foreclosure crisis has passed. Blomquist said that improvements are likely to be made throughout the rest of the year and by this time next year he expects to see pre-crisis numbers.

A major contributor to the decline in foreclosures is the result of new state regulations that took effect in California on January 1st. California led the nation in foreclosures through most of the housing crisis. During January, Florida surpassed California as the state with the most foreclosures. The Homeowner Bill of Rights went into effect in California on January 1st that helped protect its borrowers from foreclosure. According to the Bill, mortgage servicers must freeze all foreclosure proceedings once a borrower applies for a mortgage modification. The Bill also includes a $7,500 fine for servicers if they record and file multiple unverified documents in foreclosure proceedings.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Coral Gables Apartment Board President Turns Building into a Prison

Posted on February 18, 2013by Admin

According to residents, the beautiful Coral Gables Apartment building, Waters Edge, has turned into a prison since the new board president took over last year. Jim Lowe was elected in April of 2012. The residents say that he harasses everyone. Lowe reportedly snaps pictures of supposed offenses and charges residents with substantial fees. In some cases, Lowe files lawsuits over funds owed by residents. In one case, Lowe charged a single mother of two a $1,000 fee for leaving her metal screen door open. In another instance with the same mother of two, he snapped a picture of her in the lobby eating a salad. He then proceeded to send her a copy of the photo with a note that said, “Not Allowed.”

According to Lowe, he is simply enforcing the condo’s long-standing rules. He claims that had he not stepped in, the apartment building would be broke by August. Lowe said that since his election, Waters Edge is now ahead on their bills and has new elevators and security cameras. Lowe admits that his style is abrasive but that he is saving the building hundreds of thousands of dollars, as a result.

If you have any questions on this topic or are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. 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, P.A. at www.miamibankruptcy.com.

Credit, Foreclosures, Timothy Kingcade Posts

8 Ways the Housing Market has changed in 2013

Posted on February 11, 2013by Admin

There have been many changes – both good and bad – to the housing market in the last six months. New issues, rules and opportunities have surfaced that will affect everyone who is selling, buying or staying in their homes in 2013. Below are some of biggest changes industry experts have seen:

1. Home prices are on the rise. The housing market recovery has helped to improve the economy with lower interest rates and an increase in buyer demand. As a result, home prices are on the rise. The national median home price increased 10.1% in November 2012, compared to November 2011. Gains during 2013 are expected to continue at a more modest rate.

2. Interest rates are up. During 2012 interest rates declined, sometimes at record-low rates. This year, interest rates are expected to rise slightly. The Federal Housing Administration (FHA) increased its one-time upfront mortgage insurance premium for minimum down-payment loans and will likely increase those premiums again this year.

3. Inventory is down. At the end of November 2012, inventory of existing homes for sale was down 3.8%, which is a 4.8-month supply at the current sales pace. Listed inventory is down 22.5% from one year ago, when there was a 7.1-month supply. Although, an increase in inventory is often a good sign, prices have not increased enough to enable homeowners to sell and recuperate.

4. New mortgage rule to protect buyers from risky mortgages. The Consumer Financial Protection Bureau (CFPB) announced a new rule to protect borrowers from risky mortgages. The rule is known as the Ability to Repay Rule and will take full-effect in January 2014, however most lenders will put the rule into practice this year.

5. Home-equity loans will make a comeback. Home-equity loan rates were down along with mortgage rates for most of 2012. Now that home prices are stabilizing, experts expect to see lenders competing for home-equity loan business. The average rate on a fixed-rate home-equity loan fell to 6% in January, after being as high as 8.5% during the financial crisis in 2009.

6. A drop in foreclosure sales. Due to the housing market crash, foreclosure sales quickly skyrocketed. After the $25 billion deal made in February of 2012 between 49 states and the five largest banks, lenders are looking for ways to help distressed homeowners stay in their homes. Another reason for the drop in foreclosure sales is due to lenders selling off repossessed homes to investors, rather than individual buyers.

7. Home construction will increase this year. An increase in demand for homes will pave the way for home construction in 2013. Applicants for building permits for new single-family homes were up during most of the fourth quarter of 2012. An increase in hiring by builders and record-low interest rates suggested a modest growth in home construction.

8. A suffering luxury market. Luxury homeowners raced to put their homes on the market in November of last year causing a 51% surge of million-dollar home sales. The surge was an attempt to avoid the capital-gains tax hikes in January that were a part of the fiscal-cliff deal. As a result, experts expect a decrease in luxury-home sales during the first part of 2013.

To read more on this story visit: http://realestate.msn.com/8-ways-the-housing-market-has-changed-for-2013

Foreclosures, Timothy Kingcade Posts

Abacus Federal Savings Bank Charged with Mortgage Fraud

Posted on February 8, 2013by Admin

Abacus Federal Reserve Bank is a smaller bank that caters mostly to Chinese immigrants in New York. In May of last year, the Manhattan district attorney’s office charged the bank and 19 former employees with mortgage fraud. District Attorney Cyrus Vance stated that, “Mortgage fraud became institutionalized at Abacus Bank.” The bank sold many of its loans to Fannie Mae, taking the proceeds from the sales and then lending them back out to earn additional interest. Fannie Mae bundled the mortgages into securities and sold them to investors. Abacus Bank also lied about applicants to ensure they would meet Fannie Mae’s income requirements. Between 2005 and 2010, the bank sold hundreds of millions in fraudulent mortgages to Fannie Mae while gaining millions of dollars in commissions and fees.

District Attorney Vance said that Abacus Bank’s fraudulent actions epitomize the behavior that caused the housing bubble to burst. The fraud analytics firm, Interthinx, estimated there were between $1 trillion and $4.8 trillion in fraudulent mortgages issued nationwide between 2005 and 2007. There have been a few civil suits against larger banks such as Bank of America and JPMorgan Chase, however Abacus is the first and only bank to be criminally indicted for mortgage fraud. Some analysts believe the government is sending a message to Wall Street with the indictment. However, Abacus Bank is an odd choice to use as an example considering few people outside the Chinese-American community have ever heard of the bank.

Credit, Foreclosures, Timothy Kingcade Posts

Florida’s Foreclosures Provide Bargains for Home Buyers

Posted on February 6, 2013by Admin

According to RealtyTrac, five cities in Florida made the top ten list for the best U.S. locations to buy foreclosed homes in 2013 at a discounted rate. Florida is still suffering from a backlog of foreclosures from the real estate crisis, making it a great place to buy up bank-owned properties. One in 32 Florida homeowners received a foreclosure notice last year, which is more than double the nation’s average. Due to the high volume of foreclosures and the required court review per case, the state’s foreclosure crisis is exacerbated. Repossessions increased by 16,276 during 2012, making Florida’s total repossessions 84,456.

The Palm Bay metropolitan area in Florida has a 34-month foreclosure supply and 28 percent average discount to homes with debt problems. Central Florida areas such as Lakeland, Orlando and Tampa are also locations that made the list for prime foreclosure deals in 2013. Jacksonville is another area in Florida where distressed home sales are expected to be up this year.

New York ranked second on RealtyTrac’s list of foreclosure bargains. Four New York cities are on the top ten list including: Rochester, Albany, Schenectady and Troy.

Credit, Foreclosures, Timothy Kingcade Posts

FHA Announced Hike on New Mortgage Premiums

Posted on February 4, 2013by Admin

The Federal Housing Administration (FHA) announced last week that it will be raising premiums in order to reduce borrowers’ exposure to risky loans. It will raise premiums by 10 basis points or .1% on most of the new mortgages it insures. This means that if a borrower with a 30-year fixed rate mortgage puts 5% or more down, they will now pay an annual insurance premium of 1.3% of their outstanding balance. If a borrower puts less than 5% down, they will pay a premium of 1.35%. The FHA is the largest insurer of low-down payment mortgages. It will also raise premiums on ‘jumbo loans,’ or loans of $625,000 or more. Jumbo loan premiums will be raised by 5 basis points, or .05% and increase the minimum down payment requirement on these loans from 3.5% to 5%.

Another change the FHA is making to its insurance requirements is that buyers will now have to pay insurance premiums for the life of their loan. In 2001 a policy was set in place that allowed borrowers to cancel their premium payments once their debt fell below 78% of the principal balance. Borrowers who put more than 10% down at the time of the purchase will be an exception to this new policy.

Other new policies the FHA has set in place include one requiring that mortgages where the borrower has less than a 620 credit score and a debt-to-income ratio above 43% must be underwritten manually. Lenders will be required to adequately document why they decided to approve these loans. Another policy the FHA will enforce will place new restrictions on reverse mortgages.

Credit, Foreclosures, Timothy Kingcade Posts

4 Tips to A Smooth Home Purchase

Posted on February 1, 2013by Admin

Since the housing bubble burst, Americans are wary about purchasing a new home and banks are cautious about lending money, as well. However, there are four things you can do (or not do) to ensure your home purchase goes smoothly.

1. Avoid other major purchases before closing on your home. Banks can pull out of mortgages at any time, even moments before closing. If you buy a new car just before closing, your bank might become concerned and pull out of the mortgage.

2. Try to avoid any big career changes before closing on your home. Your salary and job stability are extremely important to mortgage lenders. The bank may delay the loan until after they are sure your new job is stable, however they may pull out of the mortgage altogether.

3. Prepare your finances for a last minute credit check. Since rules initiated by Fannie Mae went into effect in June, most lenders run a second credit check just before closing. If you mistakenly miss any payments, the bank might pull out of the mortgage. You also want to avoid applying for a new credit card, which could reduce your credit score if you are not approved.

4. Be aware of all of your closing-costs. Many homeowners put every penny into their down payment and do not have enough to pay closing costs. Closing costs can be as much as 3% of the cost of the home. You can lose the home if you do not have enough set aside for closing costs.

To read more on this story visit: http://realestate.msn.com/article.aspx?cp-documentid=26146302

Credit, Foreclosures, Timothy Kingcade Posts

Mortgage Interest Rates Frozen – Money Tips for 2013

Posted on January 25, 2013by Admin

It’s been reported that the Federal Reserve will likely keep interest rates regulated throughout 2013. In order to spark housing market growth, the Federal Reserve will keep the lending rate between banks in the 0% – 0.25% range until mid-2015.

Below are some savings and credit tips for the 2013 economic climate:

• Freeze your mortgage rate. Mortgage interest rates are at a 40-year low; therefore, you can lock in your mortgage with a fixed-rate. The interest on a 30-year fixed mortgage has been 3.57% throughout January.

• Lower your mortgage term. If you are planning on refinancing your home and might be moving within a few years, you should consider an adjustable-rate mortgage. During January, initial rates on five-year ARMs were 2.68%.

• Open long-term CDs. Place your cash in a long-term CD with low withdrawal penalties. This will give you the opportunity to make thousands of dollars in just a few years time.

• Avoid rising-rate CD lures. If a bank offers you an option for a higher yield on a CD if rates rise, you typically get a low initial rate. It is better to shop around and compare other rates with the fixed equivalent.

• Use local banks. Online banks sometimes have the best rates. However, if you prefer a bank you can physically go to, community banks are a great choice. Most local banks are less affected by the Federal Reserve and offer great rates. Visit www.findbankrates.com for the best rates in your area.

• Transfer a balance. Average interest rates on credit cards are extremely high right now. You can transfer a balance from a card with a higher rate to a card with a lower rate and save money.

• Carry rewards cards. If you are usually able to pay off your credit card balance, you are best suited for a rewards card, rather than an extremely low interest rate card.

To read more on this story visit: http://money.cnn.com/2013/01/01/news/economy/interest-rates.moneymag/index.html