Foreclosure Defense, Foreclosures

10 Percent of American Families at Risk of Eviction, Foreclosure

More than 11 million American families are facing a crisis when it comes to housing, specifically when it comes to making their rent and mortgage payments, according to a new report released by the Consumer Financial Protection Bureau (CFPB).

The CFPB conducted a survey of the housing market during the coronavirus (COVID-19) pandemic and found that approximately 2.1 million American families are at least three months or more behind on their mortgage payments. Approximately 8.8 million of them are late on paying their rent.  

A collective $90 billion in missed housing payments is owed. Figures this high have not been seen since the Great Recession when a massive number of families fell behind on the rent or mortgage payments. Financial experts fear that a wave of foreclosures could be coming unless something is done to help.  

Unfortunately, homeowners and renters are not the only ones struggling. Many small landlords are also struggling, making it even harder for renters to receive assistance or a break from their them to remain in their homes. Without some type of financial stimulus or assistance, it is uncertain whether evictions and foreclosures can be prevented. 

Certain socioeconomic groups are being hit harder than others, according to the CFPB figures. African American and Hispanic families are two times as likely to be late on their housing payments. Nine (9) percent of renters surveyed said that they were likely to be evicted. Of those worrying about eviction, African American and Hispanic households were more likely to be at risk of eviction.     

Please click here to read more.  

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.

Foreclosure Defense, Foreclosures

How to Save Your Home from Foreclosure in Florida

Many Americans have been able to utilize the federal and state mortgage foreclosure moratoriums during the COVID-19 crisis to stay in their homes. But a record number of homeowners have fallen behind on their mortgage payments. According to statistics from the Consumer Financial Protection Bureau, the number of Americans who have fallen three or more months behind on their mortgage payments increased by 250 percent in 2020, reaching a record of over two million households nationwide. These figures have not been seen since the Great Recession.  

It is estimated that the total amount owed is nearly $90 billion in deferred principal, interest, insurance, and tax payments. Financial analysts predict that the nation will soon see a wave of foreclosure lawsuits hitting the court system. However, it is possible for a consumer to stop the process from getting out of control and allow the individual to stay in his or her home.  

The first step should always be for the homeowner to reach out to his or her mortgage lender. Pursuing a foreclosure costs the lender money. In fact, they end up losing more money through that process than they would gain if they worked on a deal with the homeowner to stay in the home, which is why so many of them are more than willing to negotiate 

Many mortgage lenders are offering loan deferral programs or are either lowering or deferring interest payments for a temporary period. They may also be willing to waive late fees and penalties. The key is the homeowner needs to ask, first. The lender is not going to proactively reach out to the homeowner to see if he or she needs assistance. Ultimately, it is up to the homeowner to request this.

If the consumer has already reached out to the lender and is not able to realistically catch up on payments and late fees, it may be best to sell the property to pay back what is owed. For this plan to truly succeed, the borrower needs to price the property to sell. The longer the home stays on the market, the longer the homeowner will be behind on his or her payments, making the home even more difficult to sell.   

While the home is in default or foreclosure, the homeowner will likely be receiving mail from the court or lender regarding important dates and opportunities to make a deal on his or her payments. It is extremely important that all mail related to the home be opened immediately, be read, and if a response is required, be responded to quickly. The last thing the homeowner wants to do is miss an important court date or fail to take advantage of an opportunity if the lender is offering lower payments or a deal that could allow the person to remain in his or her home 

Lastly, to keep the home, it is important to continue making mortgage payments, if possible. Many people will take the idea of a moratorium and assume it means he or she does not have to pay on the mortgage debt during that periodThe problem is, during a moratorium, mortgage bills continue to incur, and if payments are not made, the homeowner will fall behind even more than he or she was at the start of the moratorium. The mortgage bill is arguably one of the most important payments the homeowner makes, even above other bills or debts, such as credit cards or medical debt.

Filing for bankruptcy can help. It may seem counter-intuitive, but when someone is facing foreclosure and is in the middle of a major financial crisis, bankruptcy can be a viable option to help save that person’s home. Ultimately, it depends on your specific financial situation and the type of bankruptcy you file – but bankruptcy can be used as a tool to help keep your home.

The Power of the Automatic Stay

If your home is already set for a foreclosure sale, you may be asking, “how can I make it stop?” Filing for bankruptcy can put a stop to the process or at the very least postpone it. As soon as a petition for bankruptcy is filed, the court issues an order called an “automatic stay,” which puts an immediate halt to all collection activities that were happening to the homeowner before the petition was filed. This automatic stay also applies to foreclosure cases.  Creditors (including your mortgage lender) must immediately cease collection attempts. Even if the mortgage lender has the home scheduled for a foreclosure sale, the sale will be postponed during a pending bankruptcy.

Please click here to read more.  

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 

 

Foreclosure Defense, Foreclosures

Foreclosure Report 2021: What to Expect in the Coming Months

Foreclosures have been essentially at a standstill due to the moratorium issued by state and local governments on foreclosures and evictions, as well as forbearance programs to help keep families remain in their homes during this difficult time. However, these efforts will expire at some point, which has many worrying about what will happen once these programs end.  

According to the Federal Reserve Bank of St. Louis, approximately 500,000 borrowers avoided foreclosure during the last quarter of 2020 due to various relief programs available to them, including the forbearance program offered through the CARES Act.

COVID-19, Debt Relief, Foreclosures

Biden Extends Ban on Evictions and Foreclosures through March

Shortly after being sworn in as the nation’s 46th president, Joe Biden signed several executive orders. One of these signed orders included extending the ban on evictions and foreclosures for individuals affected by the COVID-19 crisis.

This new order extends the Centers for Disease Control and Prevention’s (CDC) moratorium that was set to expire on January 31, 2021. The CDC’s order first went into effect in September 2020. This new executive order extends the ban for at least an additional two months past the expiration date.

COVID-19, Foreclosures, Kingcade Garcia McMaken

Evictions Pile Up as DeSantis’ Moratorium Set to Expire in Florida

Both landlords and tenants are waiting with bated breath to see what will happen when it comes to the current moratorium on evictions in Florida. With the hold on evictions set to expire at the end of this month, no official statement has come from the Florida Governor’s office regarding whether Gov. Ron DeSantis intends to extend the moratorium through the end of September. In the meantime, the number of eviction cases are piling up, waiting to proceed once the freeze on evictions is lifted.

The moratorium on evictions related to the coronavirus (COVID-19) pandemic originally took effect on April 2, during the height of the epidemic. As the hold on evictions now enters its fifth month, landlords are demanding the stay be lifted, allowing them to proceed with business, while tenants are requesting the hold on evictions be extended, giving them additional breathing room to get back on their feet during this difficult time. However, many landlords argue that the individuals taking use of this moratorium do not actually need the assistance but are simply taking advantage of the statewide ban.

Coronavirus, COVID-19, Foreclosure Defense, Foreclosures

Governor DeSantis Issues Amended Executive Order on Foreclosures and Evictions

The statewide moratorium on evictions and foreclosures during the coronavirus (COVID-19) crisis has been extended via an executive order issued by Gov. Ron DeSantis. However, critics are questioning the language within the order itself as to just what it means for Florida residents facing evictions or foreclosures.

The executive order was signed and announced on July 29. However, the amended language in this new executive order does not prevent all evictions and foreclosures like the previous one did.

Foreclosure Defense, Foreclosures

Florida Homeowners Struggle to Pay PACE Home Improvement Loans

Florida homeowners who have financed home improvements through help of an energy loan program are now struggling to pay back those debts. The program, named Property Assessed Cleaning Energy, also known as PACE, is a financing program used to fund improvements to property owner’s homes in Florida over the past three years.

PACE is offered only in three states throughout the country. For some South Floridians, the PACE program has been a blessing, but it has unfortunately ended up being more of a curse for many of them as they struggle to pay back their loans. This money meant the ability to install a new roof, solar energy systems, an air conditioning system or even hurricane-resistant impact windows. Through PACE, all of this would be financed with nothing down and no credit check. The applicant simply would need to show that he or she had equity in the home, had a good history of making mortgage payments on time, and could show that he or she had enough money to make payments on the PACE loan.

Foreclosure Defense, Foreclosures

Mortgage Foreclosure and Eviction Relief Extended by Governor DeSantis

The order issued by Gov. Ron DeSantis offering Floridians facing eviction or foreclosure relief has been extended through July 1, 2020. The order was issued at the start of the coronavirus (COVID-19) pandemic to help individuals facing financial stress. Given that the economic fall-out from COVID-19 is ongoing, Governor DeSantis has extended this relief into mid-summer.

This news comes at a good time, as unemployment is still at a record high. Florida’s unemployment system has still been failing many who have applied for benefits. Thousands of individuals are still waiting to receive their unemployment so that they can pay necessary living expenses, arguably the most important of these being rent and mortgage bills.

Foreclosure Defense, Foreclosures

Foreclosure Rates in U.S. Dip to a 20-Year Low

 The national foreclosure rate has fallen to the lowest levels seen in two decades following housing reports from July 2019. Financial experts believe this drop is due to a stronger job market and a lower unemployment rate.

According to Bureau of Labor Statistics, the national unemployment rate fell to a 50-year low of 3.5 percent as of September 2019 with 136,000 jobs being added to the market. In addition, the hourly earning for all employees has gone up 2.9 percent from the prior year. As Americans have more money to spend, the chances of them falling short of meeting their monthly expenses also goes down.

Foreclosures

Reverse Mortgages: Thousands of Florida Homeowners at Risk of Foreclosure

Thousands of Florida seniors are facing foreclosure, even homelessness due to being stuck in reverse mortgages now going into foreclosure. According to the U.S. Department of Housing and Urban Development (HUD), nearly 15,000 Florida seniors out of the 85,000 currently holding reverse mortgages are at risk of losing their homes.

A reverse mortgage is also often referred to as a home-equity conversion mortgage. Reverse mortgage lenders normally target individuals over the age of 62 who are living in homes with larger amounts of equity. The reverse mortgage allows the homeowner to borrow against the equity in his or her home. Instead of monthly mortgage payments, the balance only becomes due when the borrower dies, moves away from the home permanently or sells the home.