Mortgage Archives - Page 3 of 3

Credit, Foreclosures, Timothy Kingcade Posts

Is the Mortgage Tax Break in Danger?

Posted on March 1, 2013by Admin

Congress has been struggling for some time to trim the federal budget deficit. There is some speculation that Congress might consider eliminating the taxpayer mortgage interest deduction. It was released that this would save the government an estimated $134 billion. The current tax code allows homeowners to deduct up to $1 million of mortgage interest paid and up to $100,000 in home equity debt. However, a deciding factor for Congress might be the fact that only 23 percent of taxpayers used the tax break in 2010. This is due to the fact that the taxpayer’s deductions – mortgage interest, charitable giving and other expenses – must be worth more than the standard deduction. The deduction is mostly used in areas where housing costs are high.

If Congress pushes to eliminate the tax break, it will be a controversial decision. Although many taxpayers do not use the mortgage tax break, it is wildly popular. Recently, a Los Angeles Times columnist was criticized by angry readers after discrediting the tax break in an article. Nevertheless, the budget deficit is substantial enough that Congress is still discussing the elimination of it. More recent evidence shows that the estimated $134 billion that would supposedly be saved by eliminating the tax break is incorrect. The Joint Committee on Taxation released a revised version that indicates only $69.7 billion would be saved. Many analysts believe that rather than eliminating the break altogether, Congress might look to making “trims” to it instead.

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

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.

Foreclosures, Timothy Kingcade Posts

New Rule to Protect Borrowers From “Risky” Mortgages

Posted on January 15, 2013by Admin

The Consumer Financial Protection Bureau (CFPB) has adopted a new rule that will protect borrowers from risky mortgages. Although it will not immediately make mortgages easier to get, it will spell out what lenders must do to ensure their borrowers can afford their mortgages. Part of the reason the housing market burst was due to borrowers agreeing to mortgages they did not understand and could not afford. As a result, millions of homeowners have been foreclosed on and housing prices have dropped more than 30 percent since 2006.

The rule will go into effect next year and prohibits qualified mortgages from:

• Containing “risky” provisions, such as terms that exceed 30 years, interest-only payments or payments where the principal amount increases (negative-amortization payments)

• Carrying fees and points in excess of 3 percent of the loan

• Issuing to borrowers who will spend more than 43 percent of their income on debt payments after the mortgage

There has already been some concern from consumer groups that the rule is too protective and does not help low-income borrowers. Some groups fear that the debt-to-income ratio of 43 percent is too high for most low-income households. The CFPB said that banks would be able to ease their standards over time, however it is necessary for now.

Credit, Foreclosures, Timothy Kingcade Posts

South Florida’s Average Mortgage Balance Dropped $3K in a Year

Posted on December 19, 2012by Admin

According to CreditKarma.com South Florida’s average mortgage balance has dropped $3,000 since last year. Average debt in November 2011 in both Broward and Miami-Dade counties was $198,150 and dropped to $195,274 in November 2012. This is a sign that the economy is slowly improving in South Florida. Credit card debt has also dropped since 2011, on average more than $1,000 per consumer.
Palm Beach and Broward County mortgage banker, Adam Cohn said he has noticed that clients are trying to pay down their mortgages before refinancing. Cohn also said he has seen some couples take out of retirement to pay down their mortgages. The fact that homeowners have become more cautious with their money shows they have learned a lot from their financial mistakes during the recession. The average mortgage amount for new homeowners in South Florida is approximately $200,000.
To read more on this story visit: http://www.sun-sentinel.com/business/blogs/money-sense/sfl-mortgage-balance-drops-20121211,0,6625974.story
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

Bank of America Offers Principal Reductions to Underwater Homeowners

Posted on June 29, 2012by Admin

Bank of America recently announced that homeowners underwater on their mortgages will soon be receiving relief in the mail. The first wave of letters will be mailed out by the third quarter of this year to some 200,000 homeowners who may qualify for a principal reduction on their mortgages. Homeowners who qualify will save an average of 30% monthly on their mortgage or a total of about $150,000.
The homeowners who qualify must meet the following criteria:
1. They must be underwater on their mortgage.
2. They must be 60 days delinquent as of January 31, 2012.
3. Their monthly payment combined with insurance and other fees must account for 25% of their gross monthly income.
4. Their loan must be held by Bank of America, not a federally backed lender.
In March, Bank of America started a trial program for principal modifications for about 5,000 underwater homeowners. The bank disclosed that of these 5,000 homeowners, the combined savings reached approximately $700 million in just a few short months. Bank of America views this move as a way to hold up to their end of the settlement reached earlier in the year with the government as a result of the robo-signing scandal. Although the principal reductions are expected to relieve homeowners of much of their debt, it might also end up diminishing their credit scores. FICO spokesman, Anthony Sprauve said that as of now it is ‘undetermined how the reductions will be reported.’
To read more on this story visit: http://moneyland.time.com/2012/05/09/behind-on-your-bank-of-america-mortgage-relief-may-be-in-the-mail/
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

Missouri Woman Wins $31 Million for Blowing the Whistle on Citigroup

Posted on June 14, 2012by Admin

Sherry Hunt of O’Fallon, Missouri started at Citigroup as Vice President of Mortgages in late 2004. As someone who worked in the mortgage business for many years, Hunt quickly recognized the shortcomings of the mortgage processing at Citigroup. In 2007, her sector of the company reported that about 60% of the mortgages being processed were defective. In Hunt’s report, it stated that much of the documentation from the buying and selling of mortgages was missing. After confronting her boss about this, Hunt did not notice much change in the process. Attorneys for Citigroup began questioning Hunt and she began keeping personal records on a spreadsheet at home.
In 2008, Hunt was transferred to the quality control group at Citigroup. It was there that Hunt recognized even more wrongdoings by her company. Hunt saw that her team shipped questionable loans, with issues such as forged signatures, whited-out income lines on tax forms and misspelled bank names on borrower bank statements. Hunt reached her breaking point in 2011 when a supervisor called her into his office to say that, “her ass was on the line” if the defect numbers did not decrease. At this point, Hunt decided to take advantage of the Dodd-Frank rule and blow the whistle on Citigroup.
Hunt followed all of the necessary steps that she researched, knowing there was a slim chance she would receive help from the federal government. She hired a lawyer and decided to file a false-claims complaint against Citigroup. Almost six months later U.S. Attorney Preet Bharara, who was going to assist her in her suit against Citigroup, contacted her. Ultimately, Citigroup admitted wrongdoing, settled with the Justice Department and Hunt collected $31 million.
To read more on this story visit: http://www.businessweek.com/news/2012-05-31/woman-who-couldn-t-be-intimidated-by-citigroup-wins-31-million#p5
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

State of Florida Still Number One in Percentage of Mortgages in Foreclosure

Posted on June 5, 2012by Admin

According to CoreLogic, twelve percent of Florida’s home mortgages are in foreclosure, the highest percentage of any state in the nation.
In April, 66,000 foreclosures were completed across the nation, flat with the month of March and down from 78,000 in April 2011. The percentage of mortgages in foreclosure in Florida was down 0.4 percent from April 2011.
The five states that logged the most completed foreclosures for the year ended in April 2012 were California with 142,000; Florida with 92,000; Michigan with 60,000; Texas with 58,000; and Georgia with 57,000, CoreLogic said.
To read more on this story visit: http://www.miamiherald.com/2012/05/30/2824533/florida-still-no-1-in-percentage.html#storylink=cpy
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

Local Foreclosure Case has Banks and Courts Confused as to Ownership

Posted on May 31, 2012by Admin

Abby Lopez of West Palm Beach found herself in a foreclosure trial, where even the bank was unsure who owned her home. Lopez bought her home in 2006 for $608,715. In September 2009 she was served with foreclosure papers. The trial that is now underway has proven just how faulty the paperwork of banks can be when it comes to mortgages. Emails have surfaced that prove bank officials are unsure if the bank that served the papers (Bank of America) actually owns the mortgage. HSBC Bank USA is the bank that is listed as the trustee that is foreclosing on the home. As many mortgages before, Lopez’s mortgage went straight to the Mortgage Electronic Registration System, which is now under investigation for keeping accurate records of mortgages.
In the emails, bank officials also discussed ignoring the lack of knowledge of mortgage ownership due to extra court fees that would be applied to change the plaintiff in the case. Lopez’s attorney said he is not expecting to win the home back for his client, which is now valued at only $189,343. However, he is determined to ensure that the correct party forecloses on the home.
To read more on this story visit: http://www.palmbeachpost.com/money/foreclosures/foreclosure-case-on-despite-glitch-confusion-2358300.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.

Credit, Timothy Kingcade Posts

Consumer Bureau to Propose New Rules for Mortgage Servicers

Posted on May 15, 2012by Admin

The Consumer Financial Protection Bureau plans to propose a straightforward approach to loan administration that should benefit consumers and servicers, which are the firms that loan owners hire to collect payments, disburse taxes and insurance, and chase after delinquent borrowers.
The Bureau hopes to finalize the new rules by this summer and have them take effect by January 2013. However, it is likely that mortgage servicers will be given another year to incorporate the rules into their companies’ practices, which means the actual changes might not be seen until January of 2014.
Below is a list of the new rules that will be set in place by the Bureau:
• Mandatory issuing of monthly statements that are understandable to the loan holders. Mortgage servicers would be required to issue broken down loan statements each month that are detailed and easy for loan holders to understand.
• Required interest rate fluctuation warnings. A statement must be issued on what the current rate will be and the options for the loan holders if they are unable to afford the new rates.
• Mortgage servicers must give notice before purchasing “force-placed” insurance on the property.
• It will be required that the property has fire insurance and in some cases where it is not, the servicer must purchase its own as collateral on the property.
• Servicers will be forced to credit accounts immediately as they are paid by the loan holders. This has been required as a result of many consumer complaints that servicers are holding onto the payments for so long that an additional late fee is tacked on, costing consumers more unnecessary money.
• Servicers would be forced to practice with fewer errors made. Customer service from mortgage servicers will be more accessible and available if the consumer believes a mistake has been made on their account.
To read more on this story visit: http://www.latimes.com/business/realestate/la-fi-lew-20120506,0,7793027.story
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.