Posted by Carmen/CA on 11/3/06 12:22am
Msg #156992

no payment due to no funding of loan

What do you do when the lender/broker says they can't pay you because they were not paid since a loan did not fund?
This same lender/broker actually asked me to do something illegal at another signing I did for him. He wanted me to stamp the docs for another signer and he would get the sigs.

Reply by jojo_MN on 11/3/06 12:43am
Msg #156993

Lisa Prestegard had a good answer to the no pay issue...

...are you out there, Lisa?

As to the other issue, turn him in to the Secretary of State in CA (or whoever is in charge of your state). I have had way too many brokers ask me recently to do illegal transactions. I alway tell them no, but they seem to find others to help them out.

Reply by Lisa Prestegard on 11/3/06 7:02am
Msg #157006

Hi JoJo...

I'm here! This is what I tell them when they don't want to pay me after a loan has rescinded or hasn't funded: "You do realize that by making my fees contingent upon this loan closing that you are making me an interested party to the transaction, which is illegal?" If they fuss, I do not hesitate to invoice them along with a letter stating the same. I also make sure they know that I will follow through until I get paid.

Furthermore, (in Florida) Subcontractor statutes are quite clear... no matter who hires you, be it a LO, TC, or SS, the INITIAL contractor of services (in most cases, the TC) is ultimately responsible for making sure all subcontractors (and sub-subcontractors, if the case warrants) are paid.

Reply by Lisa Prestegard on 11/3/06 7:20am
Msg #157007

I should add...

that I do not take "contingency fee" assignments, period. I printed, I showed up, I notarized, and I expect to be paid.

Reply by SarahBeth_CA on 11/3/06 9:24am
Msg #157018

Regarding turning in a company

for requesting that you perform an illegal act. Do not even consider it unless they send you that request in writing. If you recieve a confirmation that requests an illegal act then yes turn them in.

Reply by Pamela on 11/3/06 10:52am
Msg #157043

Carmen

Because I started this year, I still work mostly with signing companies.
Many of them require a written contract. Some of these contracts will
stipulate that the signing agent will receive $0.00 if the loan does not
fund. As an agent, it is up to me to decide if I should accept these terms
or not.

Out of the entire year, I've only had one major problem regarding a non-
payment issue (and that is because I did not get the revised payment
confirmation in writing). The loan (split-signing), funded on time, yet the
signing company refused to pay-as-agreed.

However, after informing everyone (to include both escrow and the mortgage
company [both of which are owned by the same persons, and close friends
with the signing company's owner and manager]) that I would be filing formal
complaints with the various regulatory agencies (i.e. CA Dept. of Corporations,
CA Dept. of Real Estate, Better Business Bureau and the media), I promptly
received my payment (as promised).

In my opinion, if a company requests an agent to do something illegal, or acts
suspicious that is a warning signal! Red Flags, should immediately come up!
Meaning that, do not be surprised, if they refuse to pay you too.

(Note: As in my example, I asked the person to send me the revised payment
confirmation in writing, BEFORE going to both appointments. But, she was
"too busy". "Don't worry, you'll get paid". Funny though, she wasn't "too busy"
to send all the loan documents!).

In the future, stay far, far away from these type of people and/or companies.
Of course, you may not know the "true" character of the people you are dealing with
until the situation arises. But once their "true colors" are shown, termination any further
relationship.


Pam