Tag: housing market crash

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.

Click here to read more on this story.

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

U.S. sees Fewer Foreclosures as Banks Reclaim more Homes

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A report from RealtyTrac confirms foreclosure activity across the U.S. fell 1 percent last month, as banks scheduled fewer auctions and reclaimed more homes. The most recent drop, which includes foreclosure notices, scheduled auction and bank repossessions, is 20 percent below its year-ago level. It was also the 43rd consecutive month foreclosure activity was down on an annual basis.

Bank repossessions, still down 14 percent from a year ago, were up 4 percent in April, a likely result of the state and government interventions that slowed down the foreclosure process. In total, 30,056 homes were repossessed. According to real estate experts, the rise in bank repossessions is a sign that those markets are working through the final remnants of foreclosures left over from the housing market crash.

In Florida, one in every 400 homes is facing foreclosure and continues to have the highest rate in the nation, followed by Maryland, Delaware and Indiana. A total of 49,239 homes were scheduled for a foreclosure auction last month, down 3 percent from March and 21 percent from a year ago. It was the 41st straight month in which scheduled auctions were down on a year-on-year basis.

Click here to read more on this story.

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.

Credit, Foreclosures, Timothy Kingcade Posts

The Housing Market Expected to Spark Economic Growth in 2013

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Although the housing market crash of 2008 was essentially what started the recession, economists believe housing will spark economic growth this year. Most economists are in agreement that this will be a good year for economic growth and approximately half of those surveyed agreed that housing will be the reason. The other half of economists believe growth will be triggered by a combination of factors such as: consumer spending, an increase in domestic energy production and stimulus from the Federal Reserve. Economic growth is estimated to be about 2.4 percent in 2013, up from a 2 percent growth in 2012.

Economist Keith Hembre believes that new home building will be the strongest growing component of recovery. Hembre said that “supply” and “demand” are more balanced now than in previous years. According to Moody’s Analytics, approximately one million new homes will be built this year. This is a 28% increase from 2012. Home construction will also add more than one million new jobs to the job market. Another good sign for the economy is that home sales were up during 2012. Buyers are returning to the market due to record-low mortgage rates, increasing home prices and a dip in foreclosures.

To read more on this story visit:
http://money.cnn.com/2013/01/27/news/economy/housing-economic-growth/index.html?iid=SF_E_Highlight

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

Why Short Sales Can Ruin Your Credit

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There has been a longtime notion that opting for a short sale as opposed to a foreclosure is a way to avoid a major hit to your credit score. Most homeowners find out after the fact that a short sale has the same effect that a foreclosure will have on your FICO score. In a short sale, homeowners basically hand over their keys to the lenders. The home is then sold for less than is owed on the mortgage. Many struggling homeowners are under the impression that their cooperation will be rewarded with a lesser hit to their credit score. However, foreclosures and short sales are considered the same occurrence in the FICO formula for credit scores and can remove between 140 and 160 points from a score.

The FICO research showed 72% of those with a foreclosure later defaulted on another debt, compared with 55.1% of those with a short sale and 50.1% of those who arranged a deed in lieu of foreclosure, which means they voluntarily surrendered their keys to the bank rather than going through formal foreclosure. Following the mass amount of defaults on mortgages from the housing market crash, the rate of short sales has spiked. Rather than fighting foreclosure, homeowners seem to have surrendered to the banks. In most foreclosure cases, economic conditions are the reason homeowners are unable to keep up with their mortgage payments. A hefty percentage of homeowners’ mortgages are now ‘underwater,’ meaning they owe more on their mortgage than their home is worth. FICO’s reason for not altering the formula is based on the notion that homeowners who are foreclosed on or participate in a short sale, are more likely to default on another loan in the near future.

To read more on this story visit: http://money.msn.com/credit-rating/why-short-sales-trash-your-credit?page=2

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.

Florida Bar, Timothy Kingcade Posts

Florida Homeowner Finds Family in Her Home the Night Before Closing

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Florida has seen its fair share of squatters in vacant homes since the Housing Market Crash, however Michelle Pinder found herself in court with the family living in her deceased mother’s home. The night before Pinder was supposed to close on the sale of her mother’s home, her realtor stopped by to do a final check on the property to find a woman, her daughter and a man living in the home. Ibet Flores Castano, the woman living in the home, presented a lease she signed to rent the home from a man who claimed to own the property. The landlord’s name, phone number and address were all fictitious and Castano claimed she paid the man in cash.
Since the family claimed to have rented the property and has the lease agreement, the judge is hesitant to prosecute the family for any wrongdoing. Legally the family has 40 days before they must vacate the property, however Pinder’s buyers are threatening to walk away from the deal due to the 40-day period and the strange circumstances. By law, citizens in Florida are allowed to take ownership of an abandoned home under two circumstances. First, they must pay taxes. Second, they must have permission from the property’s owner.
To read more on this story visit: http://www.huffingtonpost.com/2012/11/09/michelle-pinder-finds-squatters_n_2100174.html
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.

Foreclosures, Timothy Kingcade Posts

Huge WIN for Victims of the Housing Market Crash and Foreclosures

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On March 9th 2012, the Florida State Legislative came to the decision to not pass the foreclosure bills that would ultimately speed up the foreclosure process. The Florida attorneys fighting for the cause worked along side consumer groups and activists for the third year in a row to ensure the Senate did not pass the bills. A few of the groups that worked relentlessly for this cause was PICO Florida, FOCUS, The Florida Consumer Action Network, Sarasota’s Mortgage Justice Group, and some members from Florida’s Tea Party.
To read more on this story visit: http://mattweidnerlaw.com/blog/2012/03/we-fought-the-law-and-we-won-foreclosure-bills-dead-for-now/
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.

Foreclosures, Timothy Kingcade Posts

Florida Benefits $8.4 Billion from Nationwide Mortgage Settlement

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Last Thursday, President Obama along with other government officials announced a $26 billion mortgage plan to help underwater homeowners and those struggling to make their mortgage payments get back on their feet. The five largest mortgage lending banks will pay out appropriated amounts to the government. That money will then be distributed to the states that have been impacted the most by the housing market crash.
Florida will receive $8.4 billion, the largest payout of the settlement. The payout is intended to help all homeowners, not just those who are underwater on their mortgages and behind on payments. The terms of how the majority of the money will be distributed has been released. However, there is still some deliberation for the remainder of the payout.
• $7.6 billion will be used to aid homeowners who are currently in financial crisis and who are underwater on their mortgages.
• $170 million of the payout will be turned into cash payments for those Floridians who have lost their homes due to foreclosure malpractice from their lenders the past three years. The average cash payout is expected to be approximately $2,000 for each individual homeowner.
• $308 million will go to programs for homeowners who are current on their loan payments, but have higher interest rates due to the housing crisis.
• $350 million will go directly to the State of Florida for currently undisclosed purposes.
Although this will be a huge relief for homeowners in the State of Florida, there is still much criticism of Florida Attorney General Pam Bondi, for a lack of assertion that Florida deserves more than the $8.4 billion payout.
To read more on this story visit: http://articles.orlandosentinel.com/2012-02-09/business/os-nationwide-mortgage-settlement-20120209_1_underwater-homeowners-settlement-mortgage-payments
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.