Look out: Mortgage Edge Corporation in Virginia

[Tim Hicks (Texas)]

I just wanted to give everybody a heads up on this company. Two very faithful loan officers started working for Mortgage Edge about a year ago. These loan officers are usually good for about 10 appraisal orders a month. Mortgage Edge did very well paying me until December. I have not received a check from them since the last week in November. It seems this big corporation has cash flow problems and is "robbing Peter to pay Paul". They now owe me over $9,000 and I keep hearing I will get paid, but every week I get less confident in them. The loan officers did collect checks from the borrowers for appraisal fees and forwarded them on to the home office, but those funds went to pay other bills. The loan officers are embarrassed and have decided to have their borrowers pay me directly from now on, but that doesn't make my past due invoices feel any better. Please be careful if contacted by this company and do not issue them any credit. I find it deplorable that any mortgage company can not pay their bills after the mortgage industry boom last year. Mismanagement of business has got to be this country weakest link right now.

 

[Don Clark]

8)

Tim:

Where are they located in Virginia :?: I live and work in Virginia(and North Carolina), and have never heard of them. Thanks for the heads up

Don

 

[wade3333]

Tim, I hope you posted this over in the dead beats. Wade
I am having more and more problems collecting.

 

[Tim Hicks (Texas)]

They are in Dulles, Virginia. I will post on the deadbeat list when they are 90 days past due according to deadbeat listing rules.

 

[Tiny280]

We have restricted credit to only existing credit clients and major banks / mortgage companies. Too many small shops from Katmandu, or West Virginia, call us asking for instant credit approval, with no references. I ask them if they lend money on such terms (no credit check, no references, no terms, no late fees or interest)- and where can I apply (only need three or four hundo). I hope none of our regulars start to "stretch" us.

As for the Deadbeat list, I have found that the moderator will allow posting to the list in less than 90 days if circumstances dictate (e.g., closed up shop, phones disconnected, the lender says the borrower backed out so they shouldn't have to pay for the appraisal, etc.). You might give it a try. He will reject the post at first and notify you by e-mail, but is willing to consider earlier postings when circumstances make it clear that the Deadbeat is, in fact, a Deadbeat.

 

[bradellis]

Folks,

I would suggest to you that you may want to be very careful about posting "deadbeats". If you are correct about the client, you should be on safe ground as the truth is said to be the perfect defense.

However, this will not keep them from suing you, and that could cost you a ton of money- even when you win.

And, if you happen to be wrong, watch out. Read your E & O policy and see if it covers you for defamation. Getting the picture?

Finally, I am always shocked to see appraisers tell us how they got stuck for thousands and thousands of dollars in fees. How do you let them get so deep into your pockets in the first place? You may know the LOs well, but they typically do not own the company and do not cut the checks. The owners, who sigh the checks, often could not give a rats behind about your bill. Use some common business sense.

Brad

 

[Tim Hicks (Texas)]

Brad, I checked with Wayne first before posting. I made sure everything in my post is factual. Mortgage Edge shut its doors Friday. If you have been in this business for any length of time, you should know it does not take much time to chalk up a healthy accounts receivable bill. Ten appraisals a month is $3,500. Only 90 days past due is $10,500. I have never been burned for this much before and would not have if I had not trusted the loan officers (I have known them both for over 7 years). As little as three weeks ago, I spoke to their accounts payable department and they told me they had a $7,000 check printed and ready to mail. Yes, I got suckered. Should I hold the loan officers accountable? It depends. I can continue to do work for them at their new mortgage company (with pay at the door only) and make 10 times as much as a I lost in a couple of years or cut them off and make nothing to recoup my losses. Also, it is next to impossible to do work for a corporation and keep a "pay at the door" policy. Have you ever billed a large sum to any one individual client in one month. I know I billed $10,000 to one major bank in one month. If they had shut down their doors, I would have been out of luck in 30 days. Mortgage Edge had paid monthly up until the last week in November. There were no signs of poor payment history until I started sqawking the last week in December and the first week of January. Am I upset? Very!!!! Am I mad? Very!!! Do I blame anybody, but myself? No! But, I did feel it was my duty to warn other appraisers not to issue Mortgage Edge any credit last week, regardless of whether it advertised me getting snookered. I am glad you have never been burned by a mortgage company. Consider yourself lucky.

 

[Tiny280]

Brad:

If you post ONLY what you believe to be factual information and have kept track of your contacts, attempts to collect (phone calls, faxes, letters, etc.), they will have one helluva time proving any defamation suit - and bringing such a frivolous suit opens them up for a big time counter suit :twisted:

If appraisers won't spread the sord about Deadbeat clients, they will surely go on to screw other appraisers. It's the least we can do to help each other steer clear of these bums. I have turned down 2 potential clients (with "LOTS OF BUSINESS IN YOUR AREA") over the past year because some other appraiser was kind enough to give me the heads-up via the Deadbeats site. One of those bums has gone out of business, no doubt screwing some other appraisers in the process, and the other has been posted by another appraiser who has yet to be paid. That's two screwings I avoided with the help of other appraisers - I've thanked them both personally (well, e-mail anyway).

If our state's Department of Commerce is not going to do ANYTHING to protect us from these thieves (they took money that did not belong to them and used it for their own purposes - what else would you call them?), then we should at least take the available actions to help protect each other.

While we're on this thread, has anyone else noticed a slow-down in payments from some of the national AMCs?

 

[wade3333]

Tiny, I've noticed a slow down from the banks, mortgage companies and
AMC's. Wade

 

[Tim Hicks (Texas)]

Tony,

I don't do AMC work, but I have noticed a slow down in payment cycles from several clients. That is why I did not hit the panic button until Mortgage Edge was 60 days past due. It does make you wonder with the heavy volume that mortgage compaines have done in the past year about whether we should give even our best customers credit. The problem is that my competition gives them credit, so I have to be be careful I don't run off clients that actually aren't a credit risk.