Two days ago I heard from a would-be client, who quickly became a never-would-be client. I say this because I can practically guarantee that I wont be contacted by him again.
He began by flattering my marketing abilities. Once I was buttered up he opened the door to his true inquiry: How can choosing you instead of another lender, get me the largest cash sum possible from my house?
There is actually no way to do it another way. All of us in reverse mortgages use the same formula to establish the cash amount that can be removed from a loan.
Once we covered that, he declared he wanted a first-rate appraiser that would work really hard. This is a way of covertly saying he wanted one that would report in a biased way.
The point being for him, a reverse mortgage lender will lend him a greater amount of money if his value comes in higher.
Many seniors have a desire to pay off their traditional mortgage using the reverse mortgage. It's the number 1 reason seniors are looking at the reverse. But, with waning values, it can be precarious.
However, with a low appraisal the reverse lender cannot always give enough to complete this goal for them. Instead, the borrower has to continue paying on the forward mortgage until the worth of his house goes up enough to try again.
Appraisers are in a tough spot right now. Yes, they had the luxury for many years to trump up appraisals.
A totally "by the book" appraiser reading this might be a little hot under the collar. But everyone knows plenty of fudging was going on.
Fast forward to today when everyone is getting the blame for the mortgage fiasco, appraisers included. Appraisers are being scrutinized more so than ever.
Appraisers are getting checked up on more than ever before, and are in jeopardy of having their license revoked if they do things unscrupulously.
After telling the man everything above, he said he would call me back and hasn't. I don't expect him to. I informed him that others might promise him an appraiser that would do exactly what he wanted.
Most lenders will promise it, but won't do anything differently when it comes down to it. I choose to let seniors know all the facts and risk losing them as a client.
He began by flattering my marketing abilities. Once I was buttered up he opened the door to his true inquiry: How can choosing you instead of another lender, get me the largest cash sum possible from my house?
There is actually no way to do it another way. All of us in reverse mortgages use the same formula to establish the cash amount that can be removed from a loan.
Once we covered that, he declared he wanted a first-rate appraiser that would work really hard. This is a way of covertly saying he wanted one that would report in a biased way.
The point being for him, a reverse mortgage lender will lend him a greater amount of money if his value comes in higher.
Many seniors have a desire to pay off their traditional mortgage using the reverse mortgage. It's the number 1 reason seniors are looking at the reverse. But, with waning values, it can be precarious.
However, with a low appraisal the reverse lender cannot always give enough to complete this goal for them. Instead, the borrower has to continue paying on the forward mortgage until the worth of his house goes up enough to try again.
Appraisers are in a tough spot right now. Yes, they had the luxury for many years to trump up appraisals.
A totally "by the book" appraiser reading this might be a little hot under the collar. But everyone knows plenty of fudging was going on.
Fast forward to today when everyone is getting the blame for the mortgage fiasco, appraisers included. Appraisers are being scrutinized more so than ever.
Appraisers are getting checked up on more than ever before, and are in jeopardy of having their license revoked if they do things unscrupulously.
After telling the man everything above, he said he would call me back and hasn't. I don't expect him to. I informed him that others might promise him an appraiser that would do exactly what he wanted.
Most lenders will promise it, but won't do anything differently when it comes down to it. I choose to let seniors know all the facts and risk losing them as a client.
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