Coeur d'Alene Press Newspaper | CDAPress.com
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Loan modification group mediates between borrowers, lending companies
Special sections editor
COEUR d’ALENE — It’s no secret that there are plenty of people struggling to make their mortgage payment right now. Many are behind on their payments, and can’t refinance because their mortgage balance is more than their home is worth. Or, their existing mortgage is due to adjust, which will cripple them financially if some action isn’t taken.
But there’s help.
Caleb Allen-Baker and two business partners launched 711 Mods, a loan modification company, last week. Allen-Baker earned his certified mortgage planner certification, which he said is held by only 2 percent of mortgage loan professionals in the U.S. All three of his associates, Nick Pintler, Matt Douglas and Caroline Sutherland have their certified mortgage planning specialist certifications.
Loan modification companies mediate between borrowers and lenders, especially regarding mortgage loans, in cases where the borrower is unable to repay the loan in the time prescribed in their original mortgage. Allen-Baker said there are hundreds of loan modification companies around the country.
Allen-Baker is also part owner of the Coeur d’Alene branch of Fairway Independent Mortgage Corporation, a national mortgage corporation based in Sun Prairie, Wis. Fairway is a direct FHA lender, and is able to make other government loans. The idea for 711 Mods was born when a Fairway client asked Allen-Baker to walk him through the loss mitigation process.
Allen-Baker said people can contact the loss mitigation department with their lender and go through the process, but it’s a lot of paperwork and headache.
“It’s like going to court without a lawyer,” he said.
So what is a loan modification? Essentially it’s a long-term solution to help homeowners make their payments and stay in their homes. This can be done by decreasing the interest rate, or if it’s an adjustable-rate mortgage, changing it to a fixed rate. A loan modification can also be a lengthening of the period of time the borrower has to pay back the loan, or switching to a different kind of loan.¬Ý
This is beneficial to the borrower because it allows the individual or family to stay in the home and the modification results in loan terms that work better for their lifestyle or situation. Loan modification is also beneficial to lenders because they lose more money in a foreclosure.
Allen-Baker said the first step is to try to get the homeowner into an FHA secure loan. This new refinancing option gives credit-worthy homeowners, who were making timely mortgage payments before their loans reset but are now in default, a second chance with an FHA-insured product.
The next alternative would be to decrease the interest rate. Most lenders are willing to decrease the rate for qualified applicants.¬Ý
Another option is to have the payments the borrower is behind on added to the principle of the loan which is then re-amortized. For folks who lost their jobs, but are now back at work, incurred costly medical bills or had a pregnancy or death in the family, arrangements can be made for them to catch up on past-due payments over a period of 12 to 18 months.
Realtor John Claybaugh with Keller-Williams Realty specializes in short sales, where more is owed on a home than its value. He said loan modification and short sales go hand-in-hand.
“There’s a lot of people that don’t have a choice, if they need to sell or move,” he said. “But if they want to stay in their home, I would suggest a refinance first, then a loan modification.”
Claybaugh said he believes that loan modification companies should have an attorney on staff or be backed by an attorney.
If a client is already in foreclosure, 711 can still jump in and help.
“Think about how many things we manage, but the biggest debt we have, no one tells us how to manage it,” Allen-Baker said.
711 Mods uses Stan Schultz, the owner of Schultz & Schultz Enterprises Inc. as its senior mitigator. He has 23 years experience as a loss mitigation/foreclosure specialist.
“Before it was called loss mitigation he was in the business,” Allen-Baker said. “He has a 98 percent close ratio.”
Allen-Baker said fees for a modification are the same regardless of the value or loan balance on the property —$1,900 for a first mortgage, and $2,200 for a first and second.
Fairway Independent Mortgage and 711 MODS are located in Riverstone in the Oxyfresh building. For information, visit www.711mods.com or call (877) 711-Mods (6637).
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mc wrote on Nov 12, 2008 3:51 PM:
"Apply 2 Save, Inc. was built to serve as THE solution for consumers when it comes to anything home-related. We want to help you through the entire home ownership-cycle, from matching you with a great real estate agent to finding a home, securing financing at a competitive rate, to enabling you to keep your home through any adversity."
This is right on their website.
They are just like all the rest of the over promise, under deliver companies. "
John H. wrote on Nov 11, 2008 10:47 AM:
One last request ... if you reply to my last post or any others here, may we expect you to 'substantiate/support' your rebuttal/arguments with some FACTS ... which strangely has been absent from your posts thusfar?
It very difficult to debate factually with someone who's best rebuttal reads:
********************
"I don't buy your crap about this and that. Look into it before you start stretching the truth so people back your opinions."
********************
The 'Frugal-Dude'
... someone who has 'Looked into it', which is why I reside here at Happy Gardens Insane-Asylum (the only place life makes any sense). "
John H. wrote on Nov 11, 2008 10:30 AM:
" Please John H. aka Money God, how does this affect anyone but the people involved and that back that holds the loan. Basically all that is happening is that the bank reduces the interest rate that they are getting rich off of and in turn reduces a mortgage payment.
***************************************************
Scott T. - here is your free ECON 101 lesson, compliments of Martin D. Weiss, Ph.D. (the true Money God)...
Between 2005 and 2008, for example, Fannie Mae purchased or guaranteed at least $270 billion in subprime mortgages high-fee loans to high-risk borrowers. That was more than three times as much as it had bought in all its earlier years combined.
Suddenly, however, in September 2008, it was finally recognized that all the financial statements and all the sworn testimony about solvency were unabashed lies. Suddenly, the two largest mortgage lenders on earth, supposedly rich and prosperous, were thoroughly bankrupt. And suddenly, underscoring the depth of their demise, each company needed an unprecedented $100 billion injection of government funds just to keep it alive.
THE POTENTIAL BILL TO TAXPAYERS: $200 BILLION. But that figure assumes an end to the credit crunch, no more debt collapses, no recession, and certainly no depression. If any of these assumptions should prove wrong, $200 billion will barely cover what is fast becoming history's largest cesspool of sinking debts and commitments $5.2 trillion in mortgages guaranteed or owned by the two companies, their $1.5 trillion in debts, and their $2 trillion in derivatives.
Just look at the loans, investments and commitments that the government has ALREADY made (related to housing alone):
> $200 billion to nationalize Fannie Mae and Freddie Mac ...
> $144 billion to buy mortgage-backed securities ...
> $300 billion for the Federal Housing Administration Rescue Bill to refinance bad mortgages ...
(end of excerpt)
You see Scott T. - while ACME Mortgage Co. agrees to reduce a loans interest payment and reduce the principal, those losses ARE NOT absorbed by the ACME, they are just COVERED/PASSED ALONG to the CENTRAL BANK and the FEDERAL RESERVE via this various bailout entities (i.e. Fannie, Freddie, FHA, etc.).
And here's the PART YOU SEEM TO HAVE A PROBLEM GRASPING ... the parties that are ultimately responsible for all these hundreds of billions - possibly trillions - of PURE DEBT is you, me, and our Grandkids! (aka taxpayers)
I'm sorry, but I can't reduce this scam to terms any simpler than this, except to say that NOTHING IS FREE ... someone is going to PAY ... and since these bailed homeowners aren't ... then it's you, me, and our Grandkids!
So Scott T. them-are-the-facts ... if you still don't get it, please have a wonderful life ... at least as long as you can, cause we are all basically $crewed!
The 'Frugal-Dude' "
to scott t-- from da Pm wrote on Nov 11, 2008 7:54 AM:
please tell me you are some teenager on your parents computer!! i sure hope you do not have a job or business in any lending or real estate industry...
to answer your question, this effects the home owner, the lender, the tax payer, the government, the stock holders (of any stock), the small business person, the entreprenuer, or any one that deals in American currency...
john h...keep fighting the good fight! "
FOOLING YOURSELVES wrote on Nov 10, 2008 8:45 AM:
Real estate bubble-Many people got into lending for a quick buck. Real estate slowdown-people stop using these "here today, gone tomorrow" businesses. Real estate bubble burst-They find the a new get rich scheme because they have a rolodex chalk full of people ready to default. "
Scott T. wrote on Nov 9, 2008 2:59 PM:
John H. wrote on Nov 9, 2008 10:52 AM:
"John H. likes to blame people for trying to make a living. John H. needs to get a life and quit ridiculing everyone for wanting to have a choice. For that matter, you are no better. Wait til the other shoe drops on you and you end up being the person that needs this. 10 bucks we will not find you on this board throwing mud on the unfortunate."
WAH,WAH,WAH, ...
Quit your whining and lying Scott. Something tells me your involved financially (read: benefit) in this whole 'loan modification' scam!
I'm not blaming anyone except the corrupt and greedy loan sharks; the inept Goberment that assisted them; and the stupid people that wanted something for nothing and are now crying because they're losing their home at the ripe old age of 24! Give me a break from your tired ole socialist liberal rhetoric!
Now lets talk truth and reality - if you can handle it!
Loan modifications are reductions and write-off to the lender (read: REITS; Wall Street banksters, etc.). The only reason they are willing to rewrite these loans - and we're talking hundreds of billions - is because the Goberment is underwriting THEM with OUR MONEY in the form of TAXPAYER DEBT!
Now, that DEBT is owned by YOU AND ME ... and the worst part is OUR GRANDKIDS are going to have to pay the bills!
Listen folks - are you listening Scott? - our Grandkids will never be able to own a home! Their futures are basically ruined and mirrored in BEBT!
Now, MR. SCOTT T. - I encourage you to debate this with me! Start by explaining how all of this is a free ride; it won't impact the national debt; it won't impact my Grandkids future; that it won't impact my eventual desire to retire? And, BTW, please be factual and try to avoid using any Greenspan/Bernanke/Paulson spin-logic!
I'm all ears!
The 'Frugal-Dude' "
lds wrote on Nov 9, 2008 8:17 AM:
Yes, I would go with the Firm that has done thousands of Mods, isn't brand new without any industry contacts, or
really trying to get more refi's.... Apply 2 Save doesn't
do loans, they specialize in Mods only. And yes, I would still go with Apply 2 Save even if they were more expensive
but they are not. I bet ChopChop buys the "value meal" when
he doesn't need all the menu items to "save" a penny! "
chopchop wrote on Nov 8, 2008 3:27 PM:
Ironically, it was lenders that put these people in homes they couldn't afford, now they are trying to keep them there. Funny how things work.
Many of the people in trouble with their payments need a MUCH lower payment.
How about some more "bailout" money? Where do I get in line for the handouts?
I bet LDS waits for Whopper Wednesday at Burger King. Only $1.49. "
LDS wrote on Nov 8, 2008 8:37 AM:
What the CDA Press doesn't mention, it that nation's largest and most respected Loss Mitigation company i.e.
"loan modifications" is based in CDA! They only charge
$1,495. for a first AND second modification and have
helped many thousands of home owners. They are called
"apply2save" and they saved my brothers house in MT. "
Scott T. wrote on Nov 7, 2008 10:50 PM:
I wish we were all financial wizards like you want to come across being. Unfortunately, we are not. I am not over my head. I do fine, all I am saying is that some things happen in life that are unforseeable and people have no choice but to do this. I think it is great that we have a choice to re-negotiate instead of losing our homes. If people bought over their head then yes they should learn a lesson, but be prepared, because you are the money god, they will all be beating down your door. John H. likes to blame people for trying to make a living. John H. needs to get a life and quit ridiculing everyone for wanting to have a choice. For that matter, you are no better. Wait til the other shoe drops on you and you end up being the person that needs this. 10 bucks we will not find you on this board throwing mud on the unfortunate. "
But wrote on Nov 7, 2008 3:22 PM:
Niles wrote on Nov 7, 2008 3:12 PM:
Nobody should lose a home or the equity they have in a home if they do not have to. Yes, some people have bitten off far more than they could reasonably manage and will not be able to salvage their scheme. They took a chance and lost. Others will fall on such hard times that only dramatic steps can save them if at all, through no fault of their own. "
To Scott T wrote on Nov 7, 2008 2:53 PM:
If my husband dies, I know I can't afford my home. That's reality. Our home isn't fancy but it was purchased in an over-inflated CDA market because of all of the tranplants that have so kindly moved here. That's why there is a really really big insurance policy on him. Instead of doing stupid things like getting life insurance on children that make no money and have no jobs, spend the money on the insurance for the bread winner of the family. That's what life insurance is for. So if my husband passes, I won't lose my home.
On the other hand, if I die or lose my job, my husband can still make the house payments and not lose the house. I'm not the primary income so I don't need insurance. "
Niles wrote on Nov 7, 2008 2:36 PM:
There are unscrupulous agencies who will take what little equity remains in your home away and leave you still responsible for your overdue mortgage. You will still loose your home and your credit but they will have pulled the last penny out of it for themselves first. "
Scott T. wrote on Nov 7, 2008 2:16 PM:
Don't talk trash until you have walked a mile in their shoes!! You people make me want to puke up my breakfast because you like to blame others for everything. Find something else to blame all your hang ups on. In the mean time don't blame Caleb for making peoples lives a little easier. He has taken care of all my mortgages and has done an exceptional job, and I would recommend him to anyone that needs a mortgage. It is not his fault that people do not know how to handle their finances after the fact.
GO BLAME SOMEONE ELSE BECAUSE YOU ARE UNHAPPY WITH YOUR LIFE!!!!! "
richard wrote on Nov 6, 2008 8:50 AM:
What gives CDA Press wrote on Nov 5, 2008 7:01 PM:
I don't blame them for trying to find a new niche in the dried-up mortgage business I just want to warn folks to beware. Remember the financial company in Post Falls that tricked that nice young mother out of her home?
These folks may be fine but there are a lot of shysters out there looking to make a buck. "
John H. wrote on Nov 4, 2008 4:48 PM:
to the contrary ... I've personally been through several of your examples/situations mentioned. Lost everything including my home! Had to pick myself up by my own boot-straps; learn the tough lessons of life; then move on!
Had someone been there to wipe my nose, I would've surely made the same mistakes over and over and over again!
So please spare me the guilt ... tough times create tough/resilient people! Another American deficit!
The 'Frugal-Dude'
Coeur d'Alene, ID "
Self Employed wrote on Nov 4, 2008 3:45 PM:
R U Kidding wrote on Nov 4, 2008 3:29 PM:
Self Employed wrote on Nov 4, 2008 3:25 PM:
Shizo wrote on Nov 4, 2008 3:18 PM:
"MORAL HAZARD"
That's what happens when the neighbors find out all they have to do is be late on a few payments to get a reduction, just like the "Jones'". Just wait till it happens on a nation wide level - ouch... "
Another Fish wrote on Nov 4, 2008 11:18 AM:
Relax Frances! I know that you are probably the most righteous fellow in north Idaho right now but, your simple 2nd grade formula does not explain everyones situation. And in won't help either. Thanks for the effort, Caleb and company. "
John H. wrote on Nov 4, 2008 10:13 AM:
I can't stand it ... I'm rolling on the floor laughing ... I envy you and your single-wide!
*** [In case others don't get the humor - Athol Man is a regular here - with his one line sentence - always referring to his single-wide-paid-for home!]
The 'Frugal-Dude'
Coeur d'Alene, ID
btw Athol Man ... I want you to know that you're on the 'Cutting-Edge' of the housing industry! After this economic tsunami has it way with us, single-wides are going to be new 'McMansions', compared to the typical American home - aka a 4-6 person tent! "
John H. wrote on Nov 3, 2008 12:34 PM:
1. I put 20% down for a 30 yr. fixed at 6.45%
2. I've never missed a mortgage payment.
3. I live within my means - don't use my home as my personal ATM to buy 'stuff' I don't really need.
Fast-forward to today's world:
1. Government steals $800 billion ++++++ from me and my children's and grandchildren's future earnings to BAILOUT the poor banksters and Paulson's investment banker friends.
2. John and Jane Doe whom bought twice the house they could afford, then racked up bills using their home as an ATM - is now in trouble.
3. Banks now willing to convert their Adjustable Rate Loan to a 30 yr. fixed at 2% AND reduce their principal balance (BOLDED)!
Now I know that spreading the wealth (socialism) is politically-correct these days, but what's wrong with this picture?
Am I crazy?
Can I move back to Happy Garden Insane-Asylum ... the only place life makes sense?
The 'Frugal-Dude'
Coeur d'Alene, ID "
Steve Tate wrote on Mar 23, 2009 7:23 PM: