We have come to the realization that there are some pretty bad signing companies out there scamming us out of our hard earned money. I'm not talking about the low-paying, slow-paying companies. I'm talking about the down and dirty, crooked, non-paying, deadbeat signing companies that know they can get away with keeping our money, close their doors, and run off to the bankruptcy courts crying about how their business went under and then ride off into the sunset with our cash.
So I had a thought this morning. While these crooks have been busy robbing Peter to pay Paul as the saying goes, living high on the hog, taking their lavish trips with our hard earned money . . . I find it difficult to believe they have kept up on their taxes. Eventually the IRS and their local Revenue Department is going to come knocking at the door and want what is owed to them. You can't hide from the IRS and bankruptcy is not going to save you from the Federal Government.
The reason I am posting this is because it is just another thing to think about when vetting your companies. Working for undercapitalized companies is dangerous, working for non-paying companies is even more dangerous. The fact that it is very slow out there makes it even more important to work for only the best companies. We all know that most title companies disburse funds to the signing companies shortly after closing. Therefore, we should be getting paid shortly after that. When you have a signing company paying you at 90-180 days after the closing, it is obvious they are using income generated in July to pay for work that was done in March. What happens if there is no business in November or December? How do they pay the notaries that did work for them in July and August?
It's a slow time out there right now and we all need to be aware of who we are accepting work from. Good luck to everyone. |
