Posted by RedBaron/IN on 3/16/11 10:22am
Msg #376331

will be paid after funding

How do you react to SS that tell us "will be paid after funding"? If it is not funded we will not be paid?

Reply by Les_CO on 3/16/11 10:33am
Msg #376333

It means that they do not have the capital to be in this business. They will (maybe) pay you after the loan funds, after they get paid. Depending on what arraignment they have with the Title Company they work for they may pay you (if Title pays them) if the loan does not fund for some reason (borrower rescinds) or not. In other words a deadbeat-in-waiting JMO

Reply by BossLadyMD on 3/16/11 10:49am
Msg #376336

@ Les CO agreed!!!!!!!! n/m

Reply by jba/fl on 3/16/11 11:11am
Msg #376338

In other words a deadbeat-in-waiting JMO

Nicely said!

Reply by Bob_Chicago on 3/16/11 11:29am
Msg #376339

Don't necessisarily agree. With new discloseure rules,

and the hassle that bwrs go thru to get to a closing, recissions have become few and far between. Other than a Company that has a well deserved reprutation for not paying at all,
or requiring major efforts to get paid, I do not have problem with that condition.
I have been furtunate that, with the exception or a few bankruptcies of long established companies, my bad debt chargeoffs have been minimal. Even in the case of the few bankrupt compaies, I made more than enough working for them to offset the last few dollars that I failed to collect in full.
As I have said many times, "You have a 100% chance of not getting paid for a job that you decline becuse you think that there is a chance that you might not get paid (in full or after a longer period than you anticipated)"

Reply by Les_CO on 3/16/11 3:18pm
Msg #376374

Re: Don't necessisarily agree. With new discloseure rules,

We all make our own work rules. If I’m hired to do a job, and I spend my time and recourses doing that job correctly, I expect to get paid. As you say today we see very few people rescind. We as NSA’s make almost nothing for the service we provide. We have virtually no ‘cushion’. I say let Title take a small bit of the profit they (what’s the average $2,000.00?) make on the 99% that do close, and pay us for the job we do. If they say in front we do not pay if the loan doesn’t fund, then we can take our chances. Personally I think such a policy is chicken-crap. Good SS’s like Negretes, and First Preference pay their notaries regardless. And a good Lender knows that if a borrower rescinds it’s 99.9% the fault of their LO, and they should take a small percentage of what they make ($6000?) on the loans that do close, and reimburse Title on the very few that don’t. JMO

Reply by Moneyman/TX on 3/17/11 12:11pm
Msg #376493

Agree with you Les n/m

Reply by Moneyman/TX on 3/16/11 2:52pm
Msg #376368

My reply to them, "So, you pay Net 15, right?"

That usually helps to get a little clarity on their part since the loans fund after the 3 day period.

If they pay Net 15 - no issues here. But if they really pay "when we get paid" -- Issues here.

If it's the second case, a huge red flag goes up because they attempted to make their payment policy seem like something it was not. I inform them that my normal billing is Net 30 regardless of when, or if, they get paid. Around this time I also inform them that outside of any notary errors causing the loan not to fund, once my services are rendered, payment is expected regardless of loan funding status. I also let them know (in a nice way of course) that if payment is not received within 30 days additional charges (such as late charges or a re-billing fee) will apply to the outstanding invoice. Also, if their payment policy was not what they originally told me (as in the example above), in most cases I usually decline the signing. If it was just an honest mistake (Net 30 verses Net 30 after the 3 day type) I work it out with them.

The "We don't pay if the loan doesn't fund" response used to be an issue a few years ago with a lot of smaller SS companies, but not so anymore, at least in my experience. My standard policy is that payment for my services rendered are never tied to the funding of the loan.

I've had two companies in the last two years that decided to change their payment policy, after the fact, to the we pay when we get paid type of policy. In both cases they finally paid the original invoice as well as all the late fees. Of course, I never accepted another order from them.

Bottom line is you have to ask more questions and fully understand what both sides expect when it comes to payment terms. Since I am the one issuing the credit, my terms are the ones I use and expect them to agree to. I have a higher fee for Net 45 paying companies than I do for Net 30 companies. As long as we are clear from the start and everyone is in agreement (including paying as agreed) all is good.

Reply by CopperheadVA on 3/16/11 3:27pm
Msg #376377

Re: My reply to them, "So, you pay Net 15, right?"

I've had one company that includes a note with the docs (last minute docs, of course) that says if the loan does not fund, they don't pay the notary anything. I was piXXed off to say the least when I saw that. I called them immediately to express my feelings about getting that sprung on me at the last minute before the appointment - they wouldn't budge and said if I didn't want to do the job then they would call another notary, even though it was right before the appointment. I went ahead and did the job, since right before the appointment I am not going to have an opportunity to replace the job with another one at that point, but I have not worked with that company since then. The company was Diversified Settlement Services.