Posted by Jill Martin on 8/8/05 9:26am
Msg #57538

What can we do about not getting paid????

I have been in this business for about 2 1/2 years now. I just looked through my books from the beginning of 2005. So far, I have found $1640 worth of closings I have not been paid for this year alone? I am angry and frustrated! I really try to run to the computer and search a companies reputation before accepting an assignment (if I don't know them) but sometimes, as you know, that is not possible. What can we do? Is anyone out there considering opening a collections agency for closing agents?

Reply by Mike T. on 8/8/05 10:47am
Msg #57564

I think first of all you have to determine "Why" you were not getting paid before you can take action regarding "How" to get paid when you have not been.

Are the files you signed funding? Who/what is causing file failure? Are the borrowers filing the RTC? Are the L/O's and escrow/title companies preparing the borrowers correctly so there are no issues at closing? If you agree to a Siging Service contract or Agent Agreement, is the Signing Service fullfilling their obligation to you based on that agreement? If you agreed to accept a lower fee under certain cricumstances that is all you are entitled to. Are YOU doing something that is causing difficulties at closings that cause a re-draw or re-sign? Some honest soul searching might be in order as you look back through your list of no-pays. If you have had any culpability in your file failures you need to subtract them from your list of no-pays.

I am considering a contract/invoice that I will present to the borrowers at closing. This document will clearly state that I am a third party provider and as a courtesy to all parties involved I accept a delayed payment for my services. However, if the file does not fund, the borrower ultimately will be responsible for the service provided. Borrowers should sign, date and provide a post closing phone contact to determine if the file did or did not actually fund.

My big concern is, most RTC's state that the borrower is not responsible for any fees if they cancel. I think that most borrowers will understand and provide payment if it came to that. However I do not want to create a legal problem for myself and I am investigating the legal pitfalls of such a document.

Once our notarial services have been provided and if provided correctly we should get paid. Done.

Mike T.

Reply by CaliNotary on 8/8/05 11:23am
Msg #57574

"I am considering a contract/invoice that I will present to the borrowers at closing. This document will clearly state that I am a third party provider and as a courtesy to all parties involved I accept a delayed payment for my services. However, if the file does not fund, the borrower ultimately will be responsible for the service provided. Borrowers should sign, date and provide a post closing phone contact to determine if the file did or did not actually fund."

Terrible idea. The legal enforcability of this is questionable as the borrower is not the one who hired you in the first place. More importantly, you're pretty much guaranteed to piss off the companies that hire you by doing this. The amount of business you'll inevitably lose will be way more than you could ever hope to gain by collecting directly from the borrowers in the rare cases that a loan doesn't fund.

We don't live in a perfect world. Don't run your business as if we do. You're gonna have the occasional loss, suck it up.

Reply by CaliNotary on 8/8/05 11:27am
Msg #57575

What you can do is check your books a lot more often. Sometimes we have to chase down payments, just like any industry. Hop on the phone and call the companies that owe you. You'd be surprised what a simple phone call can sometimes accomplish.

And sometimes it takes 5 or 6 simple phone calls. But the number of signings you'll be outright stiffed on will be shockingly low.

Reply by Charles_CA on 8/8/05 12:56pm
Msg #57591

CaliNotary is right. You need to set up a bookeeping system and make sure you are getting paid with in the times you set. You also need to set up an agressive collection program. CaliNotary it the nail on the head that int may take several calls. Usually the person who is a PITA is the one who gets paid first: any professional collection agent will tell you that.

Reply by buylamb on 8/8/05 5:28pm
Msg #57681

I keep the initial contact papers in a file and do not move them to the closed file until I am paid....at 6 weeks I become a very big PITA on the phone. I have never been unpaid for a signing. YET! But, "Theft of service" is a charge most reputable companies want no part of..just for the bother opf it....

Reply by TitleGalCA on 8/8/05 9:55pm
Msg #57757

Ditto on Cali being right...

I have solved my own problem just recently in non-payment - the more you make noise the better your collections will be.

There's been a lot of good posts on collecting. Search the forum and you'll get some really good advice.