Posted by Art_MD on 3/26/07 6:43am
Msg #181939

ss excuses why they haven't paid...

I've read many times that SS's are having cash flow problems because a client hasn't paid them yet.

On most signings I've gotten thru a SS, the SS is named on the HUD. Correct me if I'm mistaken, but isn't it Federal law that every item listed on the HUD has to be paid before the mortgage/DOT can be recorded? Wouldn't the SS have a great basis for a lawsuit?

Art

Reply by Stamper_WI on 3/26/07 7:20am
Msg #181945

Most likely they have been paid. Not all but most. My favorite is that the check for me has been cut by the SS but not sent.
My impression is that they are not handling their money correctly and the easiset way to play catch up is by stalling with the notary. I say this because I am owed by SS's that historically I have had no problems with. They are probably also experiencing a decrease in orders.

Reply by LisaWI on 3/26/07 7:23am
Msg #181947

Re: ss excuses why they haven't paid...Wow Art!!

So if we are listed on the HUD, and this is true, what you say, we should be paid also in that time frame?? I did not know this and am looking foward to what others have to say.

Reply by Lee/AR on 3/26/07 7:41am
Msg #181949

Some TC will have a contract with some SS..pay at eom or some such arrangement. So, yes, even tho' listed on HUD--they do get paid 'later, in one big check/wk./mo.whatever'. Problem now is, yes, loans down, cash flow down, not enough reserves to pay their bills, so they are
'creating cash flow' for themselves by 'borrowing' from us. This is NOT good business sense. If a previously timely-paying co. starts paying late, it is because they are having cash flow problems. Either stop accepting signings from them or, at the very least, only accept 'what you can afford to lose'... because you might. Even some high-profile/flying TCs can get themselves into 'cash flow' problems. A certain national TC whose owner built a golf course & then cut fees drastically to Notaries comes to mind.

Reply by PAW on 3/26/07 7:54am
Msg #181954

Well, not exactly. Funds for items on the HUD must be disbursed. That doesn't necessarily mean "paid to .....". Depending on contractual arrangements, especially with frequently used third party vendors, title companies 'escrow' (hold in their own account) the funds disbursed at closing until the contracted agreement payment dates, such as 15th and 30th, each Friday, etc., whenever their bookkeeping system cuts those checks. Some companies cut all the individual checks made out to the payee for each and every closing. It's just a way of doing business.

I submit that most title companies probably do cut checks for the signing services immediately after closing if the service and fee is listed on the HUD. When the TC mails them may be another issue, but I submit again, that it would be along with all the other third party checks. No sense in holding them if checks are cut. What the third party (e.g. signing service) does when they get their checks is up to them.

I know there is a couple of title companies that I am a "preferred" vendor for, and by agreement, even though I am listed on the HUD, I actually don't see the funds until the end of the payment period (15th or 30th).