Posted by RedBaron/IN on 2/17/11 1:00pm
Msg #373150

Pay 30 days after funding.

How do we know if the loan funds and only small print fee if it does not?
Also, do you charge more fo this type signing?

Reply by Linda_H/FL on 2/17/11 1:09pm
Msg #373152

If they've advised me they pay 30 days from funding

at 30 days, and no payment, I start checking the county records for the recorded security instrument (here, a mortgage) - a recorded mortgage is proof of funding. I did have a company just recently where, at the 30 day mark, the mortgage still hadn't showed up as recorded but I got the check at the 33 day mark (cut at 30)..

No, I don't charge more - but that's me - it's something agreed to and accepted up front. Also agreed and accepted up front is my no-sign fee (50%) and rescinded loan fee (100%)...I've never had an issue getting some type of payment for my services no matter the outcome.

My .02 FWIW

Reply by Moneyman/TX on 2/17/11 1:17pm
Msg #373154

Are they saying that they will not pay if the loan does not fund? There is a difference.

If it is payment (regardless of funding) at 30 (or 33 with 3 day included), I consider these to be Net 30. I bill Net 30 from the date of services provided (signing date) but if I was told upfront that it would be Net 30 after the 3 day, I would consider it to be the same as far as the charge and billing goes.

I do charge more for Net 45 and will rarely even consider Net 60 (even with a higher fee charged). But that is me.

Reply by Marian_in_CA on 2/17/11 1:40pm
Msg #373158

You can always check the county records to see if the deed was recorded. If so, then you have your answer.

Thing is, I would NEVER take a job that was contingent on funding. If a loan doesn't fund, it's not my fault. I still did all of the work and I deserved to be paid for it. A "print fee" is out of line if a loan fails to fund.

Too many people think that our jobs are dependent upon a loan closing. Not true. We're independent contractor hired to perform a specific service and if a loan doesn't fund, that's a risk that is taken by the lender or title, not by me.

Let's say a company failed to pay you. Does that mean that you can then send your cell phone company a partial payment and tell them, "too bad, I didn't get paid for that job...so you don't either."

They'll laugh at you and shut your phone off.

IMO, all of our agreements with these companies should expressly indicate that our fees are NOT contingent. I do... on my website and in my email confirmations. I will even try to get it written in to agreements if I can when I sign on with a company:

As I have it on my website:

"Payment for my services is not contingent upon the closing or funding of any particular loan. In other words, if a loan is canceled or doesn't fund, I am still due any and all fees for the services I provide."

Reply by Moneyman/TX on 2/17/11 1:44pm
Msg #373159

100% agree with you! n/m

Reply by ikando on 2/17/11 2:32pm
Msg #373172

I've just recently started adding the following when I confirm receipt of the job confirmation.

"Note: This message confirms our fee agreement of $xxx made by phone. That fee is based on my receipt of the final documents no less than two (2) hours prior to the scheduled signing. The amount quoted is the fee agreed upon by both parties, and is NOT subject to arbitrary reduction for No Show, No Sign or No Fund. If notary accepts and correctly performs any service, FULL FEE PAYMENT IS REQUIRED. Payment is to be received by notary no later than 30 days after signing date per assignment confirmation, or may be subject to late fee charges and/or costs for collection. If this is not agreeable with you, please cancel this order immediately before I contact the borrower."

I came up with this wording of a combination of the confirmation sent by an SS and Julie Dailey's responding message. (Thank you very much, Julie.) I expect to be paid full fee if I print the docs, prepare the packet to be returned, and travel to the borrower. If they do not show or refuse to sign, I've done the best I can to perform and get the job done. I have fulfilled my obligation under the contract.

I only began doing this in the last few months. I'd begun noticing on the contracts/ confirmations "no fee will be paid if the loan does not fund or is rescinded." That is not a legal option for them, as the hiring/contracting company has hired/contracted me to do a job. If I do not perform, that is one thing, and I would have breached the contract. However, they are also obligated to pay me or breach the contract--regardless of what happens to the paperwork.

I am not an attorney, but have worked with enough to be aware.

Reply by Robert Williams on 2/17/11 9:01pm
Msg #373251

I like the wording. I pretty routinely cross out anything other than the full fee in any agreements I'm sent. What I tell them is that if the closing is cancelled more than two hours prior and I've printed the docs I charge a $25 print fee. If they revise the docs after I've printed them it's a $25 addition and if I do my job, show up at the appointment and the borrower no-shows or whatever, it's the full fee. I do not work this business on a contingency basis.

Now if they want to negotiate something on a contingent basis I'd consider it, but I'd want a much higher fee in those cases too... if I'm gonna take a risk I expect to be compensated for it.