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Sometimes this job can be icky

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Scott R Marshall

Thread Starter
Senior Member
Joined
Dec 14, 2006
Professional Status
Certified Residential Appraiser
State
New Mexico
I'm pretty sure I handled the scenario as well as possible but sometimes this job can be icky. Received an order from an AMC that I've done no work for in the past. Call to schedule the appointment and the borrower tells me their story about how they are 66 years old and will they be able to live in their home until they die with this loan and if they do die will the land still be given to their descendants. I kindly explain that I am only the appraiser and my sole function is to determine market value for the property based on available market data and I am not able to comment on their loan program and if they have concerns they should contact their bank/mortgage company.

After I do a little research I find the the listed client according to the AMC is currently on the lender implode website as imploded. They last information on them is approximately 2 months old so I don't know if things have changed. The loan is for FHA and is represented to me as reverse mortgage. I am somewhat aware of the general concerns about reverse mortgages and I am also somewhat aware that some of the borrowers concerns are justifiable.

I've only done a handful of other appraisals, mostly for elderly borrowers, where I kind of had the same feeling. I understand that in the end it boils down to a business decision as to whether or not to accept this type of work and in most cases there is no real way to know if someone is being victimized by predatory lending practices as that is outside of our typical scope of work, I guess it's all a matter of what we are comfortable in doing as appraisers and as people.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Most HECM (FHA reverse mortgage) lenders are legitimate and monitored closely by HUD. The borrowers must attend a counseling session to make sure they understand the entire proceedure. Typically, the result of the loan begin as a +-50% LTV and can provide a better quality of life for seniors. Most complaints are from heirs who believe they are entitled to receive all the assets their parents earned during their lifetime free of any incumbrances. I consider most of the complaints elder abuse.
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I kindly explain that I am only the appraiser and my sole function is to determine market value for the property based on available market data and I am not able to comment on their loan program and if they have concerns they should contact their bank/mortgage company.

And I can't discuss the appraisal or value with you. Sorry. :fiddle:

Or even if I can, the value and property issues are what they are. I'm sure we all see some sad cases these days. :shrug:
 
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