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Applying for a Mortgage After Bankruptcy

Posted on July 22, 2020by Admin

One of the biggest worries that filers have when proceeding with a bankruptcy case is how the matter will affect their ability to obtain financing in the future, including a mortgage for a new home. While a bankruptcy case does impact a person’s credit score, all hope is not lost for eventually being able to purchase a home and obtain a mortgage. It depends a great deal on the success of the bankruptcy case and the consumer’s financial habits after the case is closed.

A Chapter 7 liquidation bankruptcy case is a much faster bankruptcy route that takes several months to finalize, while a Chapter 13 reorganization bankruptcy case can take between three to five years to finalize. A Chapter 7 bankruptcy case can stay on a person’s credit report for up to ten years from the date of filing, while a Chapter 13 bankruptcy case can stay on a person’s credit report for seven years from the date of filing or ten years if the bankruptcy is not completed or discharged.

Credit, Foreclosures, Timothy Kingcade Posts

10 Items you ABSOLUTELY Need to get a Mortgage

Posted on March 13, 2013by Admin

Many people believe that owning a home is unattainable after filing for bankruptcy. But in fact, the average waiting period from mortgage lenders after filing for bankruptcy is just two years. As long as you stay on top of your payments and do not accrue more debt. Below is a laundry list of documents you will need to start a mortgage application.

1.) A valid driver’s license which verifies your identity, compliant with the Patriot Act.

2.) Secondary ID’s (a passport or social security card) as support for number one.

3.) Your most recent pay stubs for a period of one month.

4.) W-2 forms from employers for the past two years to prove employment and earnings history.

5.) Signed federal tax returns (with all pages and schedules) for the past two years.

6.) Most recent bank and asset statements (all pages) for a period of two months.

7.) Fully executed contract for the property you are buying.

8.) If refinancing, a copy of your deed.

9.) Name, address and phone number of your landlord

10.) Name, address, phone, fax numbers and email address for your attorney

Click here to find more tips to be approved for a mortgage.

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 Kingcade & Garcia, P.A..

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

Credit, Foreclosures, Timothy Kingcade Posts

Homeowners Turning Down Refinancing Options

Posted on March 6, 2013by Admin

Since the housing market crashed in 2008, millions of Americans were left underwater on their mortgages. Last year, the federal government began installing programs to help underwater homeowners. One of the programs that was set in place in 2010 but revised several times since, the Home Affordable Refinance Program (HARP) was specifically designed to help homeowners who were underwater on their mortgages but still current on their mortgage payments. The changes made to HARP last year made it much easier for homeowners to qualify. Since these changes were made, mortgage lenders have aggressively tried to let underwater borrowers know about this opportunity to save money by refinancing, however few homeowners are taking the bait.

Mortgage originator, Quicken Loans, says that only about 25% of their qualifying homeowners have actually refinanced. The federal government and mortgage originators believe that homeowners are not taking advantage of the program because they are wary of being “bitten” again. The wounds from all of those who fell victim to no-money-down loans and balloon payments have left many borrowers cautious of any offers made by lenders. Analysts say that it is a shame that so few borrowers are refinancing through HARP since it was specifically designed to reward good borrower behavior.

To read more on this story visit: http://finance.fortune.cnn.com/2013/02/15/mortgage-refi-borrowers/

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, Timothy Kingcade Posts

10 Factors that Make You ‘Unmortgageable’

Posted on February 21, 2013by Admin

Nearly one-fourth of those who apply for a home loan are denied, according to the Federal Reserve. As a result of the Housing Crisis, it has become extremely difficult for borrowers to obtain mortgages. Below are ten factors that can put your mortgage hunt in jeopardy:

1. You are self-employed. If you are self-employed, two major issues arise when you are trying to obtain a mortgage. The first is that the income you earn from your business can be very unsteady. These fluctuations make you appear to be a risk to lenders. The second issue is that documenting small business income is more difficult and most lenders require two years of proof of income to qualify for a mortgage.

2. You have a subpar credit score. The average U.S. credit score is now 750. This is up from the 720-average a few years ago. You can get a mortgage with a score under 620, however the rates and fees will be very high.

3. You do not have enough money for a down payment. Lenders are now requiring that borrowers put a substantial amount more down, than before the housing crisis. If you do not have enough to put down, you may look too risky to lenders. Some down payments are as high as 15% to 20%; however, if you qualify for an FHA loan you may only need to put between 3.5% and 5% down.

4. You are new to the housing market. Many lenders now require borrowers to have at least a two-year housing history. However, this can include verifiable rent payments. If you are a recent college graduate, a rental history may not be an issue to your lender.

5. You are a new employee. Many lenders require borrowers to provide a two-year employment history in the same field of work before they will issue a loan. This is the result of the high unemployment rates over the past few years.

6. Your annual income is too low. If your monthly debt payments make up 45% of your gross monthly income, most lenders will see you as a risk. Any extra debt will decrease the likelihood that you will qualify for a loan.

7. You have applied too often. Contacting too many lenders can dictate the outcome of your qualification for a mortgage loan. Numerous loan applications can pull down a credit score. However, if you have applied within a week or two of each other, these inquiries should not affect your score.

8. You have too much debt. Lenders add up all of your debt including: auto payments, credit cards, student loans, etc. If your debt is substantial, many lenders will deny your mortgage application. Even if your student loans are in deferment, those balances are not always removed from your debt-to-income ratio.

9. You just made another major purchase. Beware of large purchases if you are planning to purchase a home within the next few months. If you have recently purchased a car, this can impact the likelihood that you will be approved for the mortgage.

10. You picked the wrong bank. The bank you choose as your lender can affect whether or not you get the mortgage. Larger banks will likely scrutinize you more than smaller, local banks.

To read more on this story visit: http://realestate.msn.com/-what-makes-you-unmortgageable#1

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

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

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, Timothy Kingcade Posts

‘Strike Debt’ Movement Aims to Erase America’s Debt

Posted on November 23, 2012by Admin

The latest Occupy Wall Street movement, the ‘Strike Debt’ movement consists of a group of professors, documentary filmmakers and corporate dropouts. The group aims to purchase some of the American people’s looming debt. ‘Strike Debt’ held a fundraiser last week at the Le Poisson Rouge nightclub called the ‘Rolling Jubliee.’ Before the event took place, the group had already raised $129,00 through online donations. Since then, the group’s efforts have raised more than $350,000.
In addition to raising funds for American’s drowning in debt, the group has also produced the ‘Credit Resistors’ Operations Manual. The manual explains how to fight and ignore creditors and explains how the credit industry works. While the group remains somewhat controversial, Forbes Magazine praised the movement, calling it an “idea we can all get behind.” The group will start the movement by purchasing medical debt and later move on to student loan and credit card debt.
To read more visit: http://www.nytimes.com/2012/11/14/nyregion/occupy-offshoot-aims-to-erase-peoples-debts.html?src=recg
Or visit: http://www.prwatch.org/news/2012/11/11870/join-rolling-jubilee-“you-are-not-loan”
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.