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 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."
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.
So he asks me to use an appraiser that really does a "good job". Of course this is code for an appraiser who fudges up his numbers to make the loan or transaction work.
His reasoning behind this is that a bigger loan will be handed out if there is a higher report of home worth.
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.
Yet the lender can't at all times loan an adequate amount to fulfill this wish if the appraisal returns too low. So the poor borrower has to maintain payment on the regular loan until his home value increases enough to give it another shot.
Until recently appraisers were able to take certain liberties on their report, but now they are having a rough time.
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.
Presently everyone in the housing industry is being held responsible for the mortgage debacle, appraisers too. A closer eye is being kept on them than previously.
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."
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.
So he asks me to use an appraiser that really does a "good job". Of course this is code for an appraiser who fudges up his numbers to make the loan or transaction work.
His reasoning behind this is that a bigger loan will be handed out if there is a higher report of home worth.
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.
Yet the lender can't at all times loan an adequate amount to fulfill this wish if the appraisal returns too low. So the poor borrower has to maintain payment on the regular loan until his home value increases enough to give it another shot.
Until recently appraisers were able to take certain liberties on their report, but now they are having a rough time.
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.
Presently everyone in the housing industry is being held responsible for the mortgage debacle, appraisers too. A closer eye is being kept on them than previously.
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.
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