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.
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?
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.
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.
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.
If the appraisal doesn't come in high enough the reverse mortgage company can't, in many cases, lend enough to pay off the borrower's forward mortgage. The end result is the guy is stuck with that payment until values come back.
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. - 16928
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?
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.
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.
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.
If the appraisal doesn't come in high enough the reverse mortgage company can't, in many cases, lend enough to pay off the borrower's forward mortgage. The end result is the guy is stuck with that payment until values come back.
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. - 16928
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