Some Seniors Looking for Help From Appraiser - Not happening
I received an email a few days ago from a prospective customer. I say prospective loosely because I'm quite sure he won't become one.
After warming me up by praising my marketing skills, he asked me his burning question: What can you do different than any other guy to get me the highest possible amount of cash from my house?
I replied that I can't. All reverse mortgage lenders use the same formula to arrive at how much money can be squeezed out of the 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.
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.
Unfortunately borrowers aren't the only ones struggling; appraisers are as well. For awhile they were able to pad their appraisal reports.
If you are a strict rule following appraiser, the above statement might tick you off a bit, but come on, it is general knowledge this practice was occurring.
Now the finger is pointing at everyone in the real estate industry for causing the big mortgage mess, even appraisers. They are being watched more closely than they were before.
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.
So, that is what I told this guy. I haven't heard from him since. I told him other companies would tell him how their appraiser will definitely get him the greatest value.
They all say that. In the end only one is right. I'd prefer to give an honest answer and lose the business.
After warming me up by praising my marketing skills, he asked me his burning question: What can you do different than any other guy to get me the highest possible amount of cash from my house?
I replied that I can't. All reverse mortgage lenders use the same formula to arrive at how much money can be squeezed out of the 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.
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.
Unfortunately borrowers aren't the only ones struggling; appraisers are as well. For awhile they were able to pad their appraisal reports.
If you are a strict rule following appraiser, the above statement might tick you off a bit, but come on, it is general knowledge this practice was occurring.
Now the finger is pointing at everyone in the real estate industry for causing the big mortgage mess, even appraisers. They are being watched more closely than they were before.
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.
So, that is what I told this guy. I haven't heard from him since. I told him other companies would tell him how their appraiser will definitely get him the greatest value.
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 Credit Counseling at
6:03 AM
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