Some Seniors Looking for Help From Appraiser - Not happening
Yesterday I was contacted by email from a potential client. Actually, potential client is an overstatement. I am almost positive I wont hear back from him.
He completemented me on my fine job of marketing to him as a lead-in to what he really wanted. He said, "how can you get me the most money out of my home, compared to another lender."
The truth is that nothing can be done differently. There is a formula, used by all lenders of reverse mortgages, to determine how much cash can be taken out of a mortgage.
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.
His reasoning behind this is that a bigger loan will be handed out if there is a higher report of home worth.
He, like a lot of senior borrowers, are in a tough spot today with declining values. Most are looking to pay off a mortgage with a reverse mortgage, thereby eliminating the payment.
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.
Some people will say anything to get the business. I will be forthright with you, even if you choose another lender.
He completemented me on my fine job of marketing to him as a lead-in to what he really wanted. He said, "how can you get me the most money out of my home, compared to another lender."
The truth is that nothing can be done differently. There is a formula, used by all lenders of reverse mortgages, to determine how much cash can be taken out of a mortgage.
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.
His reasoning behind this is that a bigger loan will be handed out if there is a higher report of home worth.
He, like a lot of senior borrowers, are in a tough spot today with declining values. Most are looking to pay off a mortgage with a reverse mortgage, thereby eliminating the payment.
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.
Some people will say anything to get the business. I will be forthright with you, even if you choose another lender.
posted by Credit Counseling at
6:23 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home