Does anyone else shun "collect at the door"?

[Lysander in Charlotte]

Most of my time wasters seem to be collect appraisals. These appraisals come from the lower end clients who deal with B & C borrowers. Value always seems to be a larger issue with these appraisals. Sometimes the loan has not been fully sold before the appraisal is ordered. The appraiser is in essence being used to help the client close the deal. Most every cancellation I have is on a collect assprisal, and the cancellation comes after the research has been done. On the rare occassion that I'm stood up, you can bet that its on a collect at the door.

Sometimes collect at the door is essential when dealing with a distant, unfamiliar client. I'm about to come to the conclusinn that the best answer is not to deal with distant unfamiliar clients. Local, reputable clients who pay in reasonable time is the way to go. After the boom, my tune could change.

 

[Steve Owen]

Most of my residential business is that good, local client you describe. However, I also do COD's now and then. I haven't had most of the problems you describe, but they are always there, hanging around the edge. I try to talk to the borrower immediately after accepting the assignment. If the loan isn't sold yet, or the borrower acts like they don't understand what's going on, or have any problem with paying at the door, I communicate this back to the LO and let them finish closing their deal before I do any work. Likewise, if the borrower pays my by check made out to the company name, I deposit it and wait until it has cleared before continuing with the appraisal. I like COD's for one reason, they are gravy. When my good clients have assigned all the work I'm going to get, the COD provides me with a little more. Yeah, it's hard to support that logic in the middle of a boom like this, but I've lived through several cycles.

 

[Bobby Bucks]

I try to avoid collect at the door assignments at all costs. Every market is different, but I consider
the words COLLECT AT THE DOOR to be a red flag. Please pardon me while I ramble and rant
on why I loathe those types of assignments. In my experience the loan is B or C paper, the
borrower is using a mortgage hose bag because a “real” lender wouldn’t or couldn’t do the loan
to begin with........the borrower quite often has 1 or even 2 recent appraisals they want to go over
with you before and after the inspection, these types of borrowers are often very savvy at playing
the borrower con game.....the borrower and LO always seem to want a sky high value. Borrowers
of this type are also the ones who will follow you around the house, peek at your notes, ask for
your business card, home and cell number, they will call you after the report is complete and quiz
you about why you did what, where and how and why you are $50,000 lower than their other
recent appraisal.....they never can answer why they needed another appraisal......also.......because
they wrote the check to you, they think they now own you and have a right to call you forever as
a free consultant. I certainly hope you folks who accept these assignments charge dearly for them.
I’ve noticed many in here are very firm about collecting at the door, making sure the check clears
or even playing games by running to the borrower’s bank and getting cash for the check. I see
that as a lot of wasted time. Personally I prefer getting and keeping decent clients and billing
them.

 

[David S. Roberson]

It really irks me when I call a COD borrower who hasn't been told about the COD part. I invariably ask them if they don't wonder what other charges the Lender hasn't told them about, and inform them that there are about a thousand other lenders who will be upfront with them about fees & charges. Do not try to use me to close your loan, Mr. Mortgage Man!

 

[Steve Owen]

Bobby, I'm surprised! While every single thing you said in your post is true, there is still one thing about these that I like. (And, I'm surprised you don't like it to.) That one thing is Go on, take the money and run.

Once I have the cash in my hand I can do an honest appraisal and not have to worry about getting paid by some sleazy LO who didn't collect up front and now doesn't want to pay me because my appraisal kept his grade C loan from closing. Money talks, the rest walks....

 

[David C. Johnson]

Bobby,

As always, excellent post. However, I believe Steve voices a very valid view via versing the virtues of Cash In Hand -- as well elucidated by another mutual buddy of us all, Steve Miller, renown songwriter, performer and residential appraiser.

http://www.gangster-of-love.com/songflae.html#7

dcj
__________________

PS. He was an appraiser wasn't he? -- Well, if not, he sure should have been! Maybe I am getting him confused with Keith Richards, or something.
__________________

Revisiting just now to just to add theat the end
-- for posterity sake -- maybe to help future posters and lurkers
know for sure when I'm joshing and when I ain't ! [/color]

 

[Blue1]

Bobby,

Dude, a hose bag is a hose bag..... Whether you collect at the door or not. If one deals with hose bags, it's best to collect certified funds at the door. I do have some decent clients that would rather I collect at the door and their assignments are no worse than others that pay me from their own coffers.

 

[Mike Garrett RAA]

Two important things I have learned about COD's:

1. Don't do all the research work until you have a firm appointment with the home owner.

2. Never release the appraisal report or give a verbal value until you are sure the check has cleared.

I don't mind CODs but I surely agree these have the greatest risk of cancellation and the owner's estimate of value is usually overstated!

 

[George W Dodd]

Another thing that might be useful about COD's:

I have a receipt that I have them sign that states the appraisal report is being done for XYZ mortgage company. And then goes on to tell them how they go about getting a copy of the report (lender) etc.

I don't like leaving the impression that they are the client because they paid directly for the appraisal.

 

[Jo Ann Meyer Stratton]

George D:
Me too! See the discussion going on over on the AI forum.