When working with senior clients (or any client for that matter), I find that they don't like surprises.  Have you ever noticed how "grumpy" a client can get if just the slightest little thing goes wrong?  Or the timetable has changed ever so slightly?  To ourselves, we think, "Geez...they sure are unreasonable.  It's not THAT big of a deal!"  But to the client it IS a big deal.  It isn't so much that the appraiser didn't call them yesterday like they expected and that they did get the call this morning, but it is the expectation that matters.  People are VERY reasonable once they know what to expect.  As professionals, our job is to manage expectatons.

How? I try to plan ahead and think of anything that could impede the process of the loan. Then I talk about it with my borrower. Of course, you don't want to overwhelm your client with too many details, nor do you want to scare them to death with visions of the process being a horrible ordeal.  Simply think ahead to some common issues that COULD arise in their situation and talk about them. 

I tell my clients that I don't like surprises and I bet they don't either. When I meet with them for the first time I say, "so let's recap what could happen just so you are prepared.  It's not to say that these things WILL happen -- the odds are most won't -- but I don't want you to be mad at me if they do.  OK?"  Then I run down my surprise list with them which includes (these are for reverse mortgages, but you could do the same with a listing or with a regular loan situation):

• Possibility of insurance increasing to cover replacement value
• Repairs -- possibility that there will be some repairs (I try to head this off by by taking a tour of their home and discussing any potential repairs.  If I cannot do this in person, I ask my referrer to check out the home for me).
• Home Value -- this is CRITICAL in today's market.  I always prepare my clients for a low value and I quote them figures based on several home values. Low appraised value is one of the major reasons some borrowers do not qualify for a reverse mortgage.  I do everything I can to check comps and maybe get an opinion from an appraiser prior to starting the loan process.  There is nothing worse than dashing the hopes of a senior borrower.
• Manufactured homes:  I know the guidelines and I let the borrower know in advance what will be needed and how realistic it would be to fix.  For example, if they need a permanent foundation - what are the costs and how would it be paid for?
• Other possible surprises:  Trusts, title issues, etc. Especially if one spouse has died, I let them know that it is possible that part of their trust became irrevocable.  Others on title -- I let them know the process for removing them, etc. 

Do not be afraid to be very direct about these things.  We are the advisors and our job is to advise.  They will respect you and appreciate you for your forthrightness.  Managing client's expectations upfront will make the process go smoother for everyone. 

Here's my motto:  Always under-promise and over-deliver!

Can any of you think of additional items to add to the "surpise list"?