Five years after the mortgage crisis and the housing bubble burst, more Americans are deciding that it’s okay to walk away from their underwater mortgage payments. In a recent survey conducted by JZ Analytics for ID Analytics, 32% of more than 1,000 respondents said they “believe homeowners should be able to strategically default on their mortgages without any consequences.”
Today, there’s obviously still a social stigma to walking away from an underwater home, given that the other two-thirds of respondents didn’t find it acceptable. In addition to shame and guilt, people also have to face a sense of loss, since most people are emotionally attached to their homes. There are practical considerations, too: the stress of being hounded by collectors, the knowledge that you are ruining your credit, and the possibility of being sued by the lender.
There is also community pressure to avoid foreclosure. Defaults can hurt nearby property values a 2010 study revealed. Despite all of this, attitudes have clearly changed. The idea that only ‘deadbeats’ default on their mortgage payments is a thing of the past. The ID Analytics survey found that 17% of Americans know someone who has strategically defaulted on a mortgage. What’s more, many people now recognize that companies are often able to declare bankruptcy and either shed or restructure their debts without long-term consequences.
To read more on this story visit: http://business.time.com/2012/10/15/is-the-stigma-of-ditching-your-underwater-mortgage-fading/?utm_source=contactology&utm_medium=email&utm_campaign=InChargeInsiderMarch
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.
Tag: Timothy Kingcade
Mortgage Interest Rates Fall to Historic Lows
The nation’s average 30-year fixed rate dropped this week to the record low 3.49 percent set in late July. Last week, it had been at 3.55 percent. The mortgage rate has remained below 4 percent for all but one week in 2012, according to Freddie Mac. Last year at this time, the average rate was at 4.09 percent. This week, average interest rates on 15-year, fixed-rate mortgages fell to a new low of 2.77 percent. It had been at 2.85 percent last week, Freddie Mac said. Last year at this time the average rate was at 3.29 percent.
During 2012 the rate has remained below 4 percent all but one week, according to Freddie Mac. An economist from Freddie Mac, Frank Nothaft attributes the new low rates to the the Federal Reserve’s announcement of a new bond purchase plan, which will likely aid in the ongoing housing recovery.
To read more on this story visit: http://www.orlandosentinel.com/features/consumer/sfl-morgage-interest-20120919,0,511811.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.
Miami Bankruptcy Attorney Timothy S. Kingcade Discusses Bankruptcy Filing Trends in the Sun-Sentinel
MIAMI – Bankruptcy attorney Timothy S. Kingcade, Managing Partner of the Miami-based law firm of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) recently discussed the reasons for the decline in bankruptcy filings in South Florida with Sun-Sentinel reporter, Paul Owers.
“Many people find the average attorney fee of $1,500 cost prohibitive,” said Timothy S. Kingcade. Also contributing to the decline, “Consumers do not feel as desperate, with so many facing financial troubles in recent years because of the nation’s economic troubles,” he said.
The number of bankruptcy filings for June fell from 3,222 in 2011 to 2,251 in 2012 in Palm Beach, Broward and Miami-Dade counties. Bankruptcy filings also declined from May to June of this year. Bankruptcy and foreclosure trends tend to mimic each other. Consumers often wait to file for bankruptcy until they are at risk of being foreclosed on by their lender. Therefore, foreclosure filings in South Florida have also declined in recent months.
To read more on this story visit: http://articles.sun-sentinel.com/2012-07-03/business/fl-bankruptcies-june-20120702_1_bankruptcy-filings-loan-modifications-foreclosure-action.
Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy Kingcade in 1996. The firm represents clients throughout the Southern District of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care. More information can be found at www.miamibankruptcy.com or by calling 305-285-9100.
Bankruptcy Attorney Timothy S. Kingcade Quoted in the Miami New Times Discussing Sun-Sentinel Editor’s Financial Troubles
MIAMI – Bankruptcy Attorney Timothy S. Kingcade, Managing Partner of the Miami-based law firm of Kingcade & Garcia, P.A. (www.miamibankruptcy.com) was recently interviewed by reporter, Rich Abdill for an article that was published in the Miami New Times. In the article he discussed the controversy surrounding Sun-Sentinel editor, Howard Saltz’s financial troubles. Saltz was recently relieved of millions of dollars in debt after filing for bankruptcy protection earlier this year. In an email to the Miami New Times, Saltz claimed it was a “business bankruptcy, not a personal bankruptcy.”
“It was a personal bankruptcy,” Timothy S. Kingcade said after reviewing the documents. “The character of the debt does not change the fact that it’s a personal bankruptcy.”
Later Kingcade went on to say that by filing for bankruptcy separately from his wife, Saltz was likely trying to stall a foreclosure or other settlement. “We call those types of cases ‘Ping-Pong’ cases. The creditors are being ping-ponged between the spouses,” Kingcade said. This is a method many have chosen during the recession as a last ditch effort to stay in their homes.
Saltz began purchasing real estate in the late 1990’s. Much of his debt came from unpaid mortgages, totaling more than $2.5 million. Saltz was also deep in credit card debt. He had a $17,000 credit-card bill due to Discover, a $52,000 credit-card bill due to Bank of America, a $60,000 credit-card bill due to Chase, an unpaid medical bill and other unpaid bills such as utilities.
To read more on this story visit: http://www.miaminewtimes.com/2012-07-26/news/sun-sentinel-editor-howard-saltz-bailed-on-millions-in-debts/
Miami-based Kingcade & Garcia, P.A. was established by managing partner and bankruptcy attorney, Timothy Kingcade in 1996. The firm represents clients throughout the Southern District of Florida in Chapter 7 bankruptcy and foreclosure defense cases. The firm is committed to providing personalized service to each and every client, clearly explaining the options according to the unique circumstances of his or her life. The office environment and the service provided are centered on a culture of superior client care. More information can be found at www.miamibankruptcy.com or by calling 305-285-9100.
Wall Street’s Multi-Billion Dollar Trading Scandal That no one is talking about
Wall Street’s latest billion-dollar scandal might end with a prison sentence for some traders. The federal government recently announced they are pursuing an investigation of banks and traders who have been manipulating LIBOR rates. The LIBOR rate, or London InterBank Offered Rate, is the average lending rate banks in London use when lending to other banks.
Banks were illegally setting their own LIBOR rates lower than the actual rate and then persuading municipalities and pension funds to bet against the rate. Ultimately, the banks would come out on top with millions of dollars from the municipalities. The banks were also giving Wall Street traders access to the systems they used to set up the manipulated rates so they could go in and change them as they saw fit. So far the research into the investigation shows that this could be a $750 million scheme. The two banks that have been targeted in the investigation are Barclays and Deutsche. Analysts believe this scandal will far exceed the repercussions of the mortgage/foreclosure scandal for Wall Street.
In addition, many Wall Street traders may find themselves facing jail time over the scandal. These recent events are having a powerful impact on the credibility of Wall Street.
To read more on this story visit: http://finance.fortune.cnn.com/2012/03/23/the-wall-street-multibillion-scandal-no-one-is-talking-about/
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.
Stockton, CA. could become the Nation’s Largest City to File Bankruptcy
Within the next three months, Stockton could become the nation’s largest city to file for protection from creditors under U.S. bankruptcy code. Using a new California law, the City Council is attempting to stall the process by entering mediation with creditors, including public employee unions. The Central Valley port city of 300,000 has suspended several bond payments and will not cash out vacation or sick time for employees who leave.
Before the recession, the city’s officials were spending large amounts of money on a new sports arena, a theatre complex, a marina and much more with the intention of creating a more cultured city. There is speculation that this could be one of the many reasons the city has been hit so hard by the recession. Residents believe the problem is the inflated salaries of city officials and their generous retirement packages. Others speculate that it is a result of the city’s dedication to employee unions. No matter the reason, Stockton’s economy has taken a severe hit. Crime has also increased in the area due to lack of funds for public employees such as police and firefighters.
To read more on this story visit: http://www.standard.net/stories/2012/03/14/stockton-calif-could-become-largest-city-file-bankruptcy
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. website at www.miamibankruptcy.com.
TaxMasters Inc. is the Latest Tax Representation Firm to File for Bankruptcy
It was announced recently that another tax representation firm, Houston-based TaxMasters Inc., will file for bankruptcy. The company spent millions of dollars in TV advertising promising taxpayers’ resolution from their IRS debt, but was rarely able to deliver on its promise. Texas and Minnesota have both accused TaxMasters Inc. of “deceptive tax practices.”
TaxMasters Inc. is just the latest tax representation firm to file for bankruptcy. Months earlier, J.K. Harris filed for bankruptcy after a number of lawsuits were filed against it by multiple states’ attorneys general and taxpayers. Like TaxMasters, J.K. Harris also advertised the ability to relieve consumers of their tax debts to the IRS.
Another similar case was the one involving Roni Deutch, also known as the “Tax Lady,” based out of California. After a California attorney general filed a lawsuit against Deutch in 2010 citing similar allegations, Deutch eventually surrendered her license to practice law and filed for bankruptcy.
Americans struggling with debt owed to the IRS are not encouraged to utilize tax representation firms due to their history of charging outrageous fees and their lack of success. Instead, consumers and businesses with outstanding tax debt are encouraged to contact the Taxpayer Advocate Service sector of the IRS, or a certified lawyer or CPA. There are affordable payment plans available to those who owe $50,000 or more to the IRS and in some extreme cases; it is possible to receive an “offer in compromise,” due to extenuating circumstances.
To read more on this story visit: http://www.forbes.com/sites/janetnovack/2012/03/18/owe-the-irs-taxmasters-bankruptcy-shows-why-not-to-get-help-from-tv-pitchmen/.
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. website at www.miamibankruptcy.com.
Reports Show an Increase in Credit Card Debt for Americans in the Month of February
CreditKarma.com released data from the consumer credit climate report compiled of more than 442,102 consumers in February 2012. The results showed a slight increase in consumer credit spending since January 2012. CreditKarma.com reported that the average American consumer held more than $170,000 in debt, which was attributed to home mortgages and more than $46,000 in home equity loan debt. Another debt that Americans are struggling to reduce is their student loan debt, which averages around $28,000 per person.
Not only has credit card debt increased, consumer credit scores have decreased two points since January 2012. The average American consumer credit score is 659. Credit score averages tend to be higher in states like New Jersey and Massachusetts. Credit scores in states like Mississippi and Louisiana tend to be lower, and are attributed to the lower cost of living.
To read more on this story visit: http://www.marketwatch.com/story/credit-card-debt-remains-stable-according-to-creditkarmacom-2012-03-14.
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. 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. website at www.miamibankruptcy.com.
Equifax Reports Good News for 2011
In 2011, Equifax reported that of the 585 million consumers and 81 million businesses, Americans’ delinquency debt rates were significantly declining in all areas but one- student loan repayments, which were at an increase of 1%. This is good news for the US economy, meaning that there is a decline in the amount of past due credit payments. Not only that, but there is also an increase in the number of credit cards issued by lenders to subprime borrowers (borrowers with credit scores below 660). In October of 2008, overall consumer debt was at its peak of $12.4 trillion. In October 2011, there was an 11% decline.
During 2011:
• Bank Credit Card payments 60+ days past due declined by 29%
• Auto Finance payments 60+ days past due declined by 19%
• Auto Bank payments 60+ days past due declined by 23%
• Consumer finance 60+ days past due declined by 23%
• First Mortgage payments 30+ days past due declined by 13%
• Home Equity payments 30+ days past due declined by 10%
• Retail Credit Card payments 60+ days past due declined by 15%
To read more on this story visit: http://www.marketwatch.com/story/us-consumers-paid-down-debt-on-time-in-2011-equifax-reports-2012-01-30?reflink=MW_news_stmp
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. 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. website at www.miamibankruptcy.com.
Americans Preference to Borrow Rather than Save has Triggered Extreme Debt
Before consumer and housing credit became so readily available in the 1980’s and 1990’s, Americans savings percentages were at economically healthy levels, averaging between 7 and 11 percent. But after the 1986 tax reform, home equity loans became tax deductible, which provided a greater incentive for Americans to borrow. From 1990-2005, housing prices were at extremely high rates, causing more Americans to borrow than ever before, and savings percentages dropped.
After the Housing Market Crash of 2008, Americans found themselves with extremely high mortgage payments, little to no value on their homes, and next to nothing in savings. A couple of years after the Housing Market Crash, Americans slowly began to save more for fear of ending up in extreme debt or possibly losing their homes to foreclosure.
America has the lowest rate of savings of any of the first world countries. Some experts believe this is due to the America’s middle class extreme expenditures on healthcare and education, and a lack of policies insisting on financial education. Many European countries have state institutions that advise people who are borrowing money, before they get into trouble with debt. Another policy America has yet to establish is a policy that would intervene before people become “over-indebted.”
Some experts believe that in order to create a “cultural shift” and create a more financially stable economy, America must pass a federal law that would bring financial education into every education system in the country. The idea is to help young Americans understand the financial risks of borrowing and the different types of credit available to them.
To read more on this story visit: http://globalpublicsquare.blogs.cnn.com/2012/02/16/why-america-spends-while-the-world-saves/
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. 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. website at www.miamibankruptcy.com.