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 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?
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.
The point being for him, a reverse mortgage lender will lend him a greater amount of money if his value comes in higher.
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.
Until recently appraisers were able to take certain liberties on their report, but now they are having a rough time.
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.
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.
With the frequency of appraisal reviews taking place, appraisers could possibly lose their license if they don't do things by the book.
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. - 14915
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?
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.
The point being for him, a reverse mortgage lender will lend him a greater amount of money if his value comes in higher.
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.
Until recently appraisers were able to take certain liberties on their report, but now they are having a rough time.
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.
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.
With the frequency of appraisal reviews taking place, appraisers could possibly lose their license if they don't do things by the book.
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. - 14915
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