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.
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.
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.
His reasoning behind this is that a bigger loan will be handed out if there is a higher report of home worth.
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.
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.
Appraisers are in a tough spot right now. Yes, they had the luxury for many years to trump up appraisals.
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.
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.
Most lenders will promise it, but won’t do anything differently when it comes down to it. I choose to let seniors know all the facts and risk losing them as a client.
Related posts:
- New Rules for Reverse Mortgage Interest Rate Pricing The reverse mortgage industry is currently going through a big...
- Profound Consequences to Disclaiming Spouse for Reverse Mortgage Mortgage companies factor the amount of available funds, for a...
- What is a reverse mortgage? Do I want one? If you have already heard the term reverse mortgage, it...
- Comparing Reverse and Forward Mortgages When many individuals retire, they may acquire much of their...
- Lower Your Mortgage Payments with FHA Streamlined Refinancing There are enough reasons why you must refinance your mortgage...