Tag: Foreclosures

Bankruptcy Trends, Consumer News, Timothy Kingcade Posts

Fears of a Recession Grow as Trump’s Tariff Policy Takes Effect

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Several economic indicators point to a recession, including declining stock prices and a weakening consumer outlook. Consumer inquiries about bankruptcy surged during the first quarter of 2025 to the highest level since early 2020, reports LegalShield, which predicts “a potential wave” of bankruptcy filings this summer.

What do economists rely on to predict a recession? There are 10 indicators, some of which have been weakening before President Trump announced his tariff policy.

Shifting Stock Prices. In the aftermath of Trump proposing higher tariffs on April 2, the S&P 500 has dropped sharply, down 6% just in the two-plus weeks since then. Lower stock prices reflect declining consumer and business confidence.

Uptick in Foreclosures & Real Estate Trends. Certain real estate segments have shown weakness, with office buildings among the most stressed. A new sentiment survey among real estate investors, compiled by RCN Capital and CJ Patrick Co., dropped to its lowest level since it was started two years ago. The survey takes quarterly readings of optimism or pessimism among investors in residential properties.

Employment Uncertainty. The unemployment rate stood at 4.2% in March. While those numbers are not bad, jobless rates are not a leading indicator for predicting the direction of the economy.  However, if the economy does take a dive, unemployment rates will start climbing.

Credit and Interest Rate Movements. With inflation expectations rising, due to higher tariffs, the Federal Reserve is likely to face a tough choice between trying to boost economic activity while trying to keep inflation at bay.

Consumer Outlook and Expectations. Consumers are feeling uneasy about the economy, and that is showing up in the data. Even before Trump’s tariff announcements, consumer expectations were the component that weighed down the leading indicators index. Since then, things have worsened. A more current indicator of consumer sentiment tracked by the University of Michigan showed substantial drops in confidence as of early April, as people prepare for what they think will be rising unemployment and inflation.

Hours Worked in Manufacturing. One key goal of Trump’s tariff policy is to boost jobs in U.S. manufacturing. However, while manufacturing employment may rise, it will take time, years even, for improvements to be reflected.

New Business Orders. This includes consumer goods, and orders for non-defense capital goods. The group also compiles a separate index that tracks new orders. As of the most recent report published in March, one of these components showed weakness, another was flat, and the third, slightly positive. The Trump Administration has changed its tariff policy several times in recent weeks, creating the type of uncertainty that businesses fear.

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If you have questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy 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 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.

Foreclosure Defense, Foreclosures

Florida Sees Highest Rate of Home Foreclosure Filings Nationwide

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Florida has one of the highest rates of home foreclosure filings in the nation, according to ATTOM Data, the leading provider of nationwide property data.

The real estate data analysis firm reported that one in every 2,632 housing units in Florida had a foreclosure filing in February. South Carolina registered foreclosure filings for one in every 2,248 homes, while Delaware had one in every 2,428.

Miami and Orlando had the highest rates of foreclosures for areas with populations of at least 1 million people: Orlando—with one in 1,938 housing units experiencing foreclosures—and Miami, with one in every 2,392.

Florida had the highest number of these foreclosure starts, with 2,732 properties affected, followed by California with 2,730 and Texas with 2,694.

When Can Foreclosure Start?

Foreclosure cannot start until the homeowner is more than 120 days past due on his or her payments. The purpose of this length of time is to give the homeowner time to submit a loss mitigation application before the foreclosure process begins.

If you are not able to make your monthly mortgage payments, you have options available to you that can keep you from losing your home.

REMEMBER: In Florida, the homeowner has rights when it comes to foreclosure! But do not delay.

Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami 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 McMaken website at www.miamibankruptcy.com.

Sources:

Florida Homeowners Are Losing Their Houses (newsweek.com)

How to Avoid Foreclosure: Forbearance, Short Sale, and Other Options (businessinsider.com)

Foreclosure Defense, Foreclosures, Zombie Debt

‘Zombie Debt’ Homeowners Face Foreclosure on Old Mortgages

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A number of homeowners are facing the possibility of losing their homes over second mortgages that they had taken out over a decade ago. Many of these homeowners believed that their second loans were either rolled in with their first mortgage payments or were forgiven. Unfortunately, these loans did not go away and now are legally collectible, even if they are years old. This type of debt is often referred to as “zombie debt.”

What are zombie debts? Essentially these debts are old loans being pursued with new collection actions.

Foreclosure Defense, Foreclosures

Foreclosure Filings Increase Following End of CFPB Restrictions

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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.

Foreclosure Defense, Foreclosures

Foreclosure Moratorium Expires, Leaving 1.45 Million Homeowners in Serious Delinquency

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Even though mortgage delinquency rates have fallen by five percent since May, a record 1.45 million homeowners are seriously delinquent on their mortgages, according to figures from Black Knight.

The number of delinquencies has improved for 12 of the last 14 months, with only two increases in delinquencies reported. However, delinquency volumes have continued to increase to the point of pre-pandemic levels. According to Black Knight, around 1.45 million borrowers are at least 90 days delinquent on their mortgages as of the end of July. This stage of the process is known as a late-stage delinquency, meaning the borrower is not in foreclosure but is dangerously close. Black Knight reported that this figure was one million more than at the beginning of the COVID-19 pandemic. Many of these borrowers are still working with their lenders on forbearance plans.

Foreclosure Defense, Foreclosures

Wave of Foreclosures and Evictions Expected as Federal Moratoriums Expire

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The federal moratorium on foreclosures and evictions officially expired over the weekend, leaving the legal system braced for an impending wave of filings. To offset the wave of foreclosure and eviction filings which will no doubt be on the way, lawyers and courts are finding creative solutions to the problem.  

The eviction moratorium was put into place as a way to help tenants and homeowners who were left with no income due to the coronavirus causing widespread shutdowns across the country.

President Biden has pushed on Congress to approve a one-month extension for all residential evictions. However, at this time, no federal congressional action has been taken to extend the moratorium. 

COVID-19, Foreclosure Defense, Foreclosures

Bank of America, Chase and Wells Fargo Announce Plans Following Expiration of Mortgage Foreclosure Moratoriums

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As the stimulus programs put into place come to an end this year, many homeowners worry about what their futures will hold. Approximately 2.1 million homeowners are still utilizing these mortgage forbearance plans offered following the start of the pandemic, according to figures from the Mortgage Bankers Association, which means that many people are still set to be adversely affected once the moratoriums are lifted. 

Even more concerning, nearly 1.8 million families are not in forbearance on their mortgages but are at least 90 days delinquent on their mortgage accounts as of April 2021, according to data from Black Knight.   

Coronavirus, COVID-19, Foreclosure Defense, Foreclosures

Covid-19 Mortgage Bailouts Decline, New Foreclosure Crisis Looming

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Homeowners are struggling to keep up with their mortgage payments as the coronavirus (COVID-19) crisis continues. The mortgage bailouts offered by the federal government and private sector during the crisis have helped temporarily, but as the number of bailouts begin to decline, many homeowners are finding themselves facing the possibility of impending foreclosure.

According to figures from Black Knight, a mortgage technology and data firm, approximately 3.7 million borrowers are still receiving assistance through federal government and private sector mortgage forbearance programs.  This figure represents nearly seven percent of all active mortgages. Forbearance plans allow borrowers to temporarily delay monthly payments for anywhere between three months to a year.

Foreclosures, Timothy Kingcade Posts

Foreclosures Still a Problem Years After Housing Crisis

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Many Americans are still picking up the pieces and feeling the effects of foreclosure, a decade after the housing crisis. years after the housing crisis.

During the economic crisis, many of these homeowners tried to get loan modifications from their banks to no avail. Others reported that their banks falsely denied them loan modifications that would have allowed them to stay in their homes. Wells Fargo is one bank that has been accused of denying homeowners loan modifications that they otherwise would have been qualified to receive, and as a result, these homeowners were forced into short sale or even foreclosure.

As of the second quarter in 2018, 64.3 percent of households owned the home in which they lived. This number is lower than what it was in 2004 just as the real estate markets were booming in Florida and other states, where homeownership was up at 69.2 percent.

In minority neighborhoods, the after effects of the housing crisis are worse. In the second quarter of 2018, 41.6 percent of African Americans in homes owned their homes with 46.6 percent of Hispanics reporting as homeowners. Of these households, 50.2 percent of them earned less than the national median family income.

The areas that were hit the hardest by the foreclosures were also hurt in terms of property values. As more homes are subject to foreclosure, the resulting prices for other homes in the same neighborhood also took a hit. If any of those homeowners wanted to get a second mortgage or other home equity loan later, these lower home prices made that possibility more difficult.

The housing crisis was a direct result of subprime lending to low-and-moderate income individuals. Of those targeted for these loans were minorities who were hit the hardest and have seemed to have the most difficult time in rebounding.

The crisis also resulted in bank regulations meant to prevent this same type of event from occurring. Banks have made the standards stricter, only allowing those borrowers who have excellent credit to get a mortgage, which means those who did end up losing their homes through foreclosure are not able to get a mortgage at all. The result is these individuals are stuck in rental properties, not able to build up equity and struggling to rebuild their credit so that they can get a mortgage in the future. If these individuals are able to get a mortgage, it is at an interest rate that is much higher than they previously would have received. This problem has created a cycle of homeowners being trapped in mortgages they cannot afford or individuals who are simply not able to become homeowners.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami 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 McMaken website at www.miamibankruptcy.com.

 

Foreclosures, Timothy Kingcade Posts

Homeowners Fight Unnecessary Foreclosure Fees

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Facing a foreclosure can be stressful enough but for a number of homeowners the banks where these loans originated added hidden fees on top of mortgages, after their cases were dismissed.

As a result, a class action lawsuit has been brought against the offending banks for these fees.

Zacarias Cabrera is one individual who is fighting several different banks over the past decade to keep his home from foreclosure. He is now a part of the class action suit. His troubles started in 2008 as he took care of his mother diagnosed with terminal cancer. He missed work due to having to his obligations and reached out to his bank after struggling to pay his mortgage. He was refused a loan modification, and the bank soon tried to foreclose on his home. The bank ended up dismissing the foreclosure case, but then it tried to foreclose again three years later. Again, the bank attempted to dismiss the case.

The problem came up when Cabrera noticed his monthly balance on his mortgage statements was much higher. After investigating further, he noticed the bank’s attorney fees were on the bill even though the case was dismissed on the bank’s motion. He is now facing a third foreclosure and has countersued for attorney fees that were added previously.

According to Florida law, to collect attorney’s fees, the individual must win the lawsuit and have the court specifically award these fees and costs as part of the ruling. If no winning party exists, it is assumed that each side is responsible for his or her own attorney’s fees.

The attorneys leading this class action lawsuit claim that adding these fees and not alerting the homeowner is a direct violation of the Florida’s Consumer Collection Practices Act. The banks should be aware of this fact, but are hoping borrowers’ will not know the difference.

In fact, it is happening quite frequently and has been said to be a result of the financial institutions taking advantage of the fact that the homeowners are not educated enough on the subject to know better or will not notice these fees on an already confusing billing statement.

If you have had a foreclosure case filed and then later dismissed by the bank, carefully review your statements. If any charges that are indicated as “corporate advances” or “legal fees,” it is highly possible that the bank has added these illegal fees to the statement. Contact an attorney as soon as possible and dispute these fees as soon as they are noted.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami 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 McMaken website at www.miamibankruptcy.com.