Ever try to revoke appraisal because you weren't paid?

[Atlanta CG]

For Larry Lyke: How did you get a judgement for an invoice 2 years old? I thought small claims was limited in terms of the time frame to a few months? Would be interested as my uncollectibles have increased from out of state mortgage principals. I presume they believe they are immune due to the distance.
John from Atlanta

 

[Larry Lyke]

John --

I think the filing period is something like 5 years or so here. And our court's present limit is something like $7,500.

We call our court Conciliation Court, but it's quite similar to small claims in other states.

Also included in this invoice is interest to the date of judgment and all the transfer fees, the additional $85 bond because of the particular state it's destined for, and the interest it bears from date until actual collection. The sheriff figures that last item. The sheriff's fee is put on top and they pay themselves.

Call you claims court and have them send you a set of forms and ask them how far back you can reach. Do all your court cases at one time and they will put you on the calendar back to back. Goes really rapid when your defendants don't show up.

There's other ways to collect and get your attorney to add her fees to the packages, too.

 

[Richard Carlsen]

How about making the report subject to the completion of the contractual arrangement between the appraiser and the client? i.e. getting paid. When they pay, the "subject to" gets taken off. Like right before closing.

 

[Atlanta CG]

Thanks Larry, will do as you advise.

 

[Larry Lyke]

Richard --

Maybe somebody will jump in here and help out. The following is my present thinking on the subject:

I'm venturing out when I say that I think I see providing the appraisal and getting paid as mutually exclusive.

The appraisal is no different than any service (product). The payment arrangements are a separate issue.

Providing a service (an information product) isn't like buying a car: You order the car, you agree to pay for it and make a separate agreement with whomever is putting up the money, if you need a loan to buy it.

Once you have the car, the guy who sold it to you doesn't really care if you keep up your payment arrangement with the guy who put up the money or not -- and maybe, especially, if he will be hired to repossess the car for the loan company and then resell it for another commission.

 

[Steve Owen]

There might be a few instances where language like the appraisal being subject to getting paid or revoking the validity of the appraisal could help. But, over the years, I've done pretty good at collection and have only lost a few. In every case I can think of where I've lost one, it's been because the loan went south. If the lender isn't going to make the loan anyway, then how could any of this "revoke the appraisal" stuff help?

 

[Paulette in Texas]

It wouldn't. It just makes us feel better thinking about it. Kind of like dreaming of winning "lotto." Never gonna happen. Paulette in Tx
Rotts rule and Shih tzus fine too.
go w...

 

[Anonymous]

Here is what I do. I have about 3 clients who I never have a problem getting paid from. I think we al have those. Then are the others. The problems. I simply collect at the door. If the lender or broker balks, fine. I dont need to do work I am not going to get paid for. I make it very clear. I either am paid cash or check. The check must cash or clear the bank before I start the appraisal. (the inspection will be done).

This works for sales as well. I have buyers meet me at the property to pay for the appraisal all the time. I have had agents right me their personal check to get me to do the appraisal.

I dont have the volume of mortgage broker work I once had. But I checked and only got paid on about 40% of it. When I started checking that, is when I went to the above policy. Stick to it and it NEVER fails.

 

[Alan Simmons]

Three years ago I repossessed three four-plex appraisals from a major bank. It really is an involved story but basically the bank had dropped the ball at closing. To cover their local butts they demanded I collect from the client. Naturally the client told me to get my money from the bank. I eventually just picked up the reports and walked out the door.

Two days later I was paid in full (by the client) with a request to return the reports.

 

[Kelleen Hellmann]

What really burns me is that most appraisals, along
with credit reports are paid for up front and if not
those that do close are POC by settlement.
Clients collecting appraisal $ and not paying
the appraiser for months are making nice interest on other
folks money! The subject to... idea is intriquing but
I would think it complicates alot...splitting hairs with
USPAP for one and how does the final user easily confirm
payment and when they do finally pay you'd have to
remove the condition. In the perfect world appraisers should
collect their fee at the door or be paid with the request...
in the perfect world.
:roll: