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double paid

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transformers

Thread Starter
Freshman Member
Joined
Apr 3, 2007
Professional Status
Certified Residential Appraiser
State
Texas
I recently received a check from a title company, for a report that I had been paid upfront for. Not sure why they sent me another check, the invoice they have is marked paid, but am now wondering the best way to refund the money to the borrower.

Should I mail the check back to the title company and let them handle it? Or should I cash it and just mail a check to the borrower.

If this was monopoly, it would say "bank error in your favor, collect $200."
 

Diane Lagrou

Junior Member
Gold Supporting Member
Joined
Dec 31, 2005
Professional Status
Certified Residential Appraiser
State
Ohio
Personally I would cash the check and then write the homeowner a check from my company refunding the fee. (along with a note explaining what happended) Sending it back to the title company, who know what would happen to it. I'm sure others may chime in on this, but this is how I handle it when I get doubled paid.
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
I tend to agree with Diane. Since it appears the second check was paid out of escrow it would just complicate the paper work there.

Tie the refund to the borrower's check, not the title company's check and get a written receipt.

Once done, Send a new 'paid' invoice to the client with the corrected 'date paid' and an explanation of the double payment and refund. I'd even include a copy of the refund receipt.

The client can't 'uninclude' the appraisal fee from the HUD1 so their only concern would be that their paperwork was straight and that the borrower was treated fairly.
 

John Hopkins

Freshman Member
Joined
Sep 30, 2005
Professional Status
Certified Residential Appraiser
State
Washington
I disagree. Send it back to tile. Not your mistake. Not your problem to fix.

As a side note HUD 1s are fixed and amended all the time. In this case escrow or title just marks appriasal paid Outside of Escrow and refunds to borrower.
 

Diane Lagrou

Junior Member
Gold Supporting Member
Joined
Dec 31, 2005
Professional Status
Certified Residential Appraiser
State
Ohio
I think either way is acceptable. It's not a big deal to refund the fee from your own company. Also, it shows the homeowner that you are honest. You could have kept quiet and kept the check in hopes nobody would notice. Never know what you may benefit down the road from being honest. This way the homeowner knows that you are on the ball and the title company didn't catch it.
 

Tom Foster

Senior Member
Joined
Apr 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Some appraisers would just keep the money and say:

"This makes up for the time I got ripped off and that one appraisal that I worked so hard on."

Then you get a call 2 months later asking for the money back.
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
i know I'm crazy, but I cash every check i get.
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
Cash the check and go on a drinking binge
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Send it back to the title company and inform the borrower.

When the title company eventually audits it's records and shows a double payment they will come back to you. Even if you show that you reimbursed the borrower it may be a hassle and can of worms.
 

Midwest Guy

Senior Member
Joined
Dec 12, 2006
Professional Status
Certified Residential Appraiser
State
Missouri
I agree with sending the money back to title, however the first check did not come from the title company so the audit will not catch anything. Inform borrower so title company does not try to launder the money away from its accounts or send to lender.

Send it back to the title company and inform the borrower.

When the title company eventually audits it's records and shows a double payment they will come back to you. Even if you show that you reimbursed the borrower it may be a hassle and can of worms.
 
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