He completemented her on a fine job of marketing to him as a lead-in to what he really wanted. He said, “how can you get me the most money out of my home, compared to another lender.”
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.
Once that topic was covered in depth, he declared he wanted a first-rate appraiser that would work really hard. This is a way of covertly saying he wanted one that would report in a biased way.
The point being for him, a reverse mortgage lender will lend him a greater amount of money if his value comes in higher.
With home values reducing he is in the same shaky boat as many senior mortgage holders. They want to use the reverse loan to rid themselves of the burden of the monthly payment.
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.
Appraisers are in a tough spot right now. Yes, they had the luxury for many years to trump up appraisals.
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.
Fast forward to today when everyone is getting the blame for the mortgage fiasco, appraisers included. Appraisers are being scrutinized more so than ever.
Appraisers are getting checked up on more than ever before, and are in jeopardy of having their license revoked if they do things unscrupulously.
All of this important information was relayed to the potential client, and the lender hasn’t heard form hm since. She also warned him that other lenders would possibly assure him the highest possible appraisal.
Most lenders will promise it, but won’t do anything differently when it comes down to it. A decent and honest lender will inform potential clients with all the facts at the risk of losing them as a client.
That’s OK though. In the end, she’ll sleep much easier at night knowing she did the right thing.
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