Tag: Foreclosures

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.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Quicken Loans Fast Becoming the New Mortgage Lending Machine

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In the years since the housing market crash, many of the nation’s largest banks have strengthened their underwriting processes and become more conservative with their mortgage-lending activities.  However, Quicken Loans has pushed forward, becoming the second-largest retail mortgage lender originating $96 billion in mortgages last year — an eight-fold increase from 2008.

In a federal false-claims lawsuit filed in 2015, the Department of Justice accused Quicken Loans of misrepresenting borrowers’ incomes and credit scores, in order to qualify for Federal Housing Administration insurance.  As a result, when those loans defaulted, the government says the taxpayers — not Quicken loans — suffered millions of dollars in losses.

In the years since the financial crisis, Quicken has emerged as a leader in the nation’s “shadow-banking system,” a network of non-bank financial institutions that has gained significant ground against its more regulated bank counterparts in providing mortgage loans.

The increase in regulation and decreased profits forced the nation’s banks out.  Non-banks, like Quicken, quickly filled the gap.

Former executives have described Quicken Loans as a technology company that sells mortgages. The 3,500 mortgage bankers who work the phones are the life-blood of the company. Many new employees come in with little to no background in financial services. According to an inside source, one employee joined after delivering pizzas to the Quicken Loans office and becoming interested in working there.

Critics say these shadow banks, by focusing on the riskier end of the mortgage market, may be reviving the same circumstances that resulted in so many defaults and foreclosures.

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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 website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

Trending: High-End Homes See More Foreclosures

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The national foreclosure rate fell to 1.4% in December 2014, the lowest rate since March 2008, according to CoreLogic. However, foreclosures involving mortgages of $750,000 plus remain at a higher rate of 2.5%. After the housing market crash of 2008, foreclosure percentages have reached as high as 6.8% in May of 2012. Economists agree that it appears the market is on the mend. However, struggling homeowners with more expensive mortgages are recovering less quickly than others.

Before the housing market crashed, homeowners with $750,000 plus mortgages had lower rates of foreclosure than average. The recession has changed all that. CoreLogic data shows that in January 2006, the national average foreclosure rate was .1% and the foreclosure rate for $750,000 plus mortgages was .05%.

Some experts believe the higher foreclosure rate for “wealthier” homeowners is linked to the stock market crash and the subsequent housing market crash in 2008. Another contributing factor is that most states with higher stock in luxury homes also have the highest foreclosure rates since the crash. For example the three states with the highest foreclosure rates are New Jersey with a rate of 5.2%, New York with a rate of 4.0% and Florida with a rate of 3.7%. All of which have a large concentration of high-end real estate.

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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 website at www.miamibankruptcy.com.