Posted by Marsha Risch on 2/8/07 5:12pm
Msg #174772

Loans that recinded

Has anyone ever had a company not pay you due to a loan recinding? I just had a company tell me that they do not normally pay when a refi recinds. This loan was a real pain anyway. I still printed the package, made the trip, and did my job. I won't do any more closings for this company.

Reply by Sylvia_FL on 2/8/07 5:43pm
Msg #174778

Tell them that you do not normally waive payment if a loan rescinds, so you expect to be paid for your services.

Reply by TRG_wy on 2/8/07 6:20pm
Msg #174789

Another option - Tell them you'll accept half the signing fee, full printing fee with proof that the loan recinded. Otherwise it is full fee. I always expect full fee regardless, because I did my job.

Reply by MR_INDPLS on 2/8/07 6:45pm
Msg #174791

I did tell them that I require at least half pay. Don't use Global Land Title unless you tell them upfront that even if it recinds, you still require payment.

Reply by LawrenceOK on 2/9/07 9:41am
Msg #174886

Re: Loans that recinded... In my opinion

You have done the job you were contracted (hired) to do and should be paid for your services. If a borrower rescinds a loan, it is after the fact. We are contracted (hired) to witness and notarize the borrower(s) signatures as unbiased and impartial witnesses. Once we leave the borrowers home with the completed documents, our job is done.

Reply by MistarellaFL on 2/9/07 2:59pm
Msg #174953

Depends on the agreement between you and the hiring party

I have several clients that I have agreed with (prior to the closing)
that if I am listed on the HUD, or paid at funding, that if it does not
fund, I will not be paid.
It happens so infrequently, that it is not ofany concern to me.
I continue getting business and probably less than 3 per year
rescind or no-sign.

Reply by TRG_wy on 2/9/07 10:05am
Msg #174892

Re: Loans that recinded - How I do it

1. I have all my confirmations set to my email - NO fax confirmations. Email is more easily documented and date/time stamped.

2. I have an autoresponder reply to my email account that advises them I received their confirmation (in case I am on the road and can't reply immediately). This autoresponder notice also advises them that the agreed upon fee is due in full as contracted for, if completed, even if borrower exercises their RTC or the loan fails to fund.

It goes on to state that any additional services I perfrom on their behalf, such as printing, photocopy, mileage allowance e.t.c. are always due and payable expenses.

I do not do end-of-month billing. All invoices are deemed net 45 days from date of closing. Any payment not received within 60 days of closing places their company on our "Denial of Service List" until all arears invoices are paid in full. Additionally, we may assess a late fee of 25% plus a 1.5% per month late interest fee.

There are a few other notices in the autoresponder, but that is the jist of it.

Last year I had ZERO bad debts compared to a few hundred dollars for the preceeding years.
State laws are there to protect service providers and I now use them to the fullest. The honest SA has no issues and those that are dishonest find out pretty quickly that I am not a door matt to wipe their feet on or to be taken advantage of.

Reply by notarymd on 2/9/07 10:37am
Msg #174905

Re: Loans that recinded - How I do it

It is my understanding that a notary may not notarize a document in which the notary has a vested interest. Therefore, it seems to me that a notary's fee must not be contingent on whether or not a loan closes.

Reply by TRG_wy on 2/9/07 11:21am
Msg #174930

Re: Loans that recinded - How I do it

That point is noted in my autoresponder as well. That is why my fee is always due and payable for services rendered.