Yesterday I was contacted by email from a potential client. Actually, potential client is an overstatement. I am almost positive I wont hear back from him.
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?
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.
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.
Unfortunately borrowers aren't the only ones struggling; appraisers are as well. For awhile they were able to pad their appraisal reports.
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.
Fast forward to today when everyone is getting the blame for the mortgage fiasco, appraisers included. Appraisers are being scrutinized more so than ever.
With the frequency of appraisal reviews taking place, appraisers could possibly lose their license if they don't do things by the book.
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.
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?
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.
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.
Unfortunately borrowers aren't the only ones struggling; appraisers are as well. For awhile they were able to pad their appraisal reports.
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.
Fast forward to today when everyone is getting the blame for the mortgage fiasco, appraisers included. Appraisers are being scrutinized more so than ever.
With the frequency of appraisal reviews taking place, appraisers could possibly lose their license if they don't do things by the book.
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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