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Agreed upon C.O.D. order can be deceiving

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David Sawyer

Member
Joined
Mar 8, 2008
Professional Status
Certified Residential Appraiser
State
Florida
:fiddle:Had a mortgage broker and homeowner ruin my Memorial Day weekend. A week ago last Friday received hard order on a refinance for a MH on 5 acres from a broker in Scottsdale, AZ for rural property in my area. I called and explained the complexity of the assignment and said that all my orders are C.O.D. and this order would be 500 "beaver pelts". Her response was let me get back to you.

Well, I did not hear again from her until this past Friday afternoon late. She explained that the prior appraisal was not acceptable and how did I feel about the assignment. I told her I have done probably a 100+ MH on large acreage in the past few years and was
quite experienced with them. I gave her my email and said to resend a new order with all the information etc. She also told me that the reason the other appraiser was not acceptable was that the gross percertage adjustments were in excess of 60% on the comps. I explained that the sales comps were hard to find but prior to making an appointment I would pull all the research and make sure that the report that I would do would not have such excessive adjustments and would be credible which I did. She said she would get it right out. Never heard from her again on Friday and she called about 4:00 Sat afternoon and said she never heard from me. I went over my email address with her again and she realized she sent to the wrong email address. I also asked when she called the borrower that she explained that I would be collecting at the door which she did. I contacted the borrower on Sat and set app't for 10:00 am Sunday morning. I did all this due to the fact that I leave first thing in the morning (Tues, May 27) on a 4 day out of town golf trip with 31 other guys. Upon talking to the home owner I inquirred how she would be paying and her response was with cash. Everything seemed hunky-dory at this time!

Well, since my time was limited prior to my going out of town. I worked 6 hours pulling all the data and entering all the comps Sat evening. I even had most of the comps photos in my system from prior reports. Had everything complete except the inspection and entering the subject pictures and sketch. Subject was 3 yr old MH from a manf that I had performed numerous prior reports on. Received call at 10:30 from homeower that she did not feel right about giving payment to me and not getting the report. I explained everything about the process and then she put husband on the phone and he was an **s. He started by saying he never paid more than 300 for an appraisal and it was asinine to charge 500 "beaver pelts" and went on and on and finally he hung up on me. Like I said, I already had over 6 hrs invested and I contacted the broker Sat night and explained that I had never, never had anything close to this happening and never experienced a more irrogant person over the phone (he must have been tanked up) Next moring on Sunday her manager called and we talked and I told him again I only do appraisals C.O.D. except for banks and he agreed and said he would straighten everything out. I told him it would now be late Sunday before I could get out there.

Later the homeowner called me very humble and we set up the app't for 5:00 pm Sunday afternoon. I also said to her that we are not going to have anymore of the foolishness that we had last night, are we? Her reply was no.

I go out to this rural property that is a hour drive and her adult son is there and leads me through the residence for the inspection. Mommy or Daddy are not there. Upon my completion I inquire did your Mom leave an envelope for me with payment of my fees. His response was no. I said good bye and would you explain to your mother that this report can not be delivered until payment received. I called the mortgage broker and left a voice message on her cell phone that I wanted the name and number of her manager. Next I get a call from homeower saying that the broker told her that I would get payment after she got a copy of the report. I explained that that was not correct saying that I am ending this conversation and all future conversations along this matter would she please have with the M/B. I called again to the M/B and explained the happenings and told her I did not appreciate her giving my cell number to the home owner and please have your manager contact me. I will not have the homeowner come to my house with payment and will only accept payment via credit card number over the phone by the manager.

I came home and completed the report. I then send an email with the invoice only stating that SOW was C.O.D. and report release upon receipt of payment.

Question, what actions do I explore now. I am leaving at 7:00 am on my golf trip in the morning. I do have the "boss" here to accept payment and sent the report out while I am gone if in fact something is cleared up while I am gone.

One final note, of my 5 comps, 2 of them the gross adjustment was 26 & 27% while the rest were 10-20% gross adjustments. A major contribution in this was my negative time adjustment of 6 & 7 % since this is a declining market and I had sales of 110, 80, 50, 30 days . All were on 5 acre parcels like the subject. I also forgot to say this is an FHA which the MB did give me a case number. I also explained in my report the reasons for these adjustments exceeding 25% gross adjustments and the fact that the negative time adjustments were a major contribution of this factor.

The M/B did send me the report by the other appraiser with the gross adjustments of 42%, 64% & 60% since all of his comps came from MH villages and RV parks where the site size was 2,500 sq ft/ 10,000 sq ft $ 1200 sq. All his comps were 13, 8 & 4 months old sales. Also his invoice stated payment due within 90 days or closing, whichever occurs first. Where's skippeeeeeee
:new_all_coholic:
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I don't have these problems. Given the situation, I call the HO, tell them the
fee, and they either agree to have the check ready or I don't leave my nice
warm house. I also don't pull comps prior to inspection or do any research.
I also don't give a wit about what the last appraiser did.

After cashing the HO's check and putting the cash in my wallet, I'd start doing
real work on the report.

I've made the same mistakes you made, that's why I don't do it the way you
did it, otherwise I'd be unhappy with myself.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
<....... snip......>
Question, what actions do I explore now. <.... snip.....>:new_all_coholic:

Mr. Sawyer,

How about you explore an entirely new set of business practices? Because it sounds like your current ones have "Jerk me around" as the foundation for all the following ones. What part of these borrowers never had the money to pay you in the first place, and you were being manipulated in order to get your value opinion out of you first before it being paid for, did you miss?

Webbed.
 

aussie ken

Member
Joined
Mar 11, 2005
Professional Status
Retired Appraiser
State
Australia
Mr. Sawyer,

How about you explore an entirely new set of business practices? Because it sounds like your current ones have &quot;Jerk me around&quot; as the foundation for all the following ones. What part of these borrowers never had the money to pay you in the first place, and you were being manipulated in order to get your value opinion out of you first before it being paid for, did you miss?

Webbed.

David you sound an ethical individual & you did your best to help these people in the time frame available.........so please go and enjoy your golfing holiday and let your wife handle it. The world wont shut down while your away ...........its really not a problem .......No money no report ............ PS Dont worry about Webbed he's really a fluffy little duckling.
 

David Sawyer

Member
Joined
Mar 8, 2008
Professional Status
Certified Residential Appraiser
State
Florida
David you sound an ethical individual & you did your best to help these people in the time frame available.........so please go and enjoy your golfing holiday and let your wife handle it. The world wont shut down while your away ...........its really not a problem .......No money no report ............ PS Dont worry about Webbed he's really a fluffy little duckling.

Thanks Ken!
I was working under a very limited time frame. I have been in business on my own now 7 months and have been 100% on my collections up until now. I have not had to write anything off yet! Got to finish packing now
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Go enjoy yourself. CAD can be a real problelm at times. Worry about it when you get back.

Sounds like if the loan don't fly they don't want to pay. I hope you had a letter of engagement and fee agreement signed by both the lender and homeowner.
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Thanks Ken!
I was working under a very limited time frame. I have been in business on my own now 7 months and have been 100% on my collections up until now. I have not had to write anything off yet! Got to finish packing now

Who determined you had a limited time frame?

It has been my practice to only complete an assignment for a new out of state client (with a very few exceptions) once the skins have been received. Reports requiring a short turn time are reserved only for a limited number of my preferred clients or COD orders once the fee is received in cash or cashed local check. Additionally, their is the understanding the subject is not a complex assigment.

Webbed probably has it right, I doubt the owner had the cash available to pay the COD fee.

I know the market is slow, however, it was your decision to complete the report. I definately would not send this report to anyone until the appraisal fee has been paid in full by cash. In this case the delay is the homeowners issue, not yours. Your issue is collecting prior to delivery per you agreement with the out of state broker.

If the prior report sent to you utilized inappropriate comparable sales when more similar sales were available, you might consider submitting the report to FREAB.
 

David Sawyer

Member
Joined
Mar 8, 2008
Professional Status
Certified Residential Appraiser
State
Florida
Go enjoy yourself. CAD can be a real problelm at times. Worry about it when you get back.

Sounds like if the loan don't fly they don't want to pay. I hope you had a letter of engagement and fee agreement signed by both the lender and homeowner.

Only had email from client (lender) a hard copy of order. Like I said, no money no report!
 

David Sawyer

Member
Joined
Mar 8, 2008
Professional Status
Certified Residential Appraiser
State
Florida
If the prior report sent to you utilized inappropriate comparable sales when more similar sales were available, you might consider submitting the report to FREAB.[/quote]

Tell me more on this! When I reviewed the other appraisal, I think a 1st day trainee could have done a much better job! However, this jerk by his license number has been around at least 15 yrs.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Agree totally with Elliot & Webbed;

Why would you even do anything without funds ?

We either get a CC or check PRIOR to commencing any work; Lenders can be captured by the local Attorney Generals office, the HO is like chasing the wind.
 
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