Appraisers Not Fudging Numbers - No Help for Reverse Mortgage
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.
After that he says he would like me to hire an appraiser that would do impressive work. I knew this meant he wanted someone who would alter his results a bit to have it work out in the end.
He was asking this, because he knew if his home was assessed at a high amount, the lender would give him a heftier loan.
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.
Unfortunately borrowers aren't the only ones struggling; appraisers are as well. For awhile they were able to pad their appraisal reports.
An appraiser who comes across this article might be bothered by what I said and even dispute it, but its common knowledge that number adjusting was taking place.
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.
Appraisal audits are more frequent than ever and appraisers are running the risk of losing their license if business is not conducted as it should.
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.
They all say that. In the end only one is right. I'd prefer to give an honest answer and lose the business.
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.
After that he says he would like me to hire an appraiser that would do impressive work. I knew this meant he wanted someone who would alter his results a bit to have it work out in the end.
He was asking this, because he knew if his home was assessed at a high amount, the lender would give him a heftier loan.
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.
Unfortunately borrowers aren't the only ones struggling; appraisers are as well. For awhile they were able to pad their appraisal reports.
An appraiser who comes across this article might be bothered by what I said and even dispute it, but its common knowledge that number adjusting was taking place.
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.
Appraisal audits are more frequent than ever and appraisers are running the risk of losing their license if business is not conducted as it should.
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.
They all say that. In the end only one is right. I'd prefer to give an honest answer and lose the business.
posted by Debt Consolidation Loan at
6:15 AM
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