Look out: Mortgage Edge Corporation in Virginia

[bradellis]

Tim,

I have been in the profession for 20 years. I have been a buisness person for nearly 35 years.

I have been involved in law suits (not over my work) that cost me a great deal of money- even when I won. That is why I caution everyone about this.

Bad debt is a reality out there. It is all the more so when dealing with mortgage brokers- primarily due to the minimum capital requirements for starting such a business.

I am well aware of the ease in which a client can run up a large unpaid bill. BUT, I am obliged to point out that this is a decision left to the appraisal firm. Do you or don't you extend credit? Whether or not you do it or how large a credit line you will allow is a function of your own choices.

In 20 years, my total appraisal fee bad debt was $1200 in aggregate.

I am NOT teling you that you have made a bad business decision. I got into appraising full time after getting stuck in my former business with a bad debt that was many many times what you have to eat.

My appraisal bad debt was low because I learned my lessons- the hard way. You now have learned a lesson the same way I did. I'm betting that you will be revising your "open account" policies.

All appraisers should pay attention to this. We are professionals, but that does not mean we should ignore good business practices.

Many appraisers keep AMCs as a part of their client base. I always did. They gave me work when other clients were very slow. While I am not saying that they could not also go belly up, they tend to be more solid by far than mortgage brokers.

That is a choice appraisers must make for themselves- just like any other business decision.

I hope these 2 LOs will make it up to you.

Brad

 

[Head Surfer]

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.

Sorry, but I do not allow posting of any debt that is under 90 days old on the deadbeat listings. If you are aware of some that are posted with debts of under 90 days old please let me know and I will remove them because it is a mistake.

It doesn't matter about the circumstances, they must be 90 days old or older before they can go on the list. We had to settle on a time period and it seemed that if they intended to pay they would have paid within 90 days. Typically large companies run 30-60 days in their payment cycles, so anything less than 90 was too short.

However, if they haven't paid in 90 days, it is apparent they don't intend to pay. Arguments could be made for longer or shorter time periods, however 90 days seems fair.

 

[Henry E. Deecke]

I sympathize with all of the respondents, 2001 was my 25th. year in business, and my worst year for collections. Thank's to Wayne for developing the Deadbeat listing, I use it regularly, to my benefit, with success. :wink:

 

[jtrotta]

Wayne this is your puppy, you can run it anyway you would like; but hope your open for comments; For most of the 20 years I've been in this business, most Lenders use a 30 day billing cycle and this is generally how they attract your service, it's in their letter of engagement. Generally I work on a "pay at the door theme" and only on occassion do I allow credit; based in part on getting jerked around a few years back.

After many investigations into various ways of collecting debt, most use a 30 day turn time to consider your lost dollars. IE: someone owes you a dollar - they don't pay you in that 30 day period, you have just lost $.25 of the dollar owed; the next 30 day period increase to $.35 and so fourth. So as you can see by the end of the 60th day you've already lost 60% of the debt owed. How do you decide if it's worth chassing the debt??

This was one reason I decided to go to "strictly" cash at the door*

Secondly, why do you think a Bank wants your payment right to the "penny", if you add up all the penny's at year end, $10,000 / $100,000 / $1,000,000 / $1,000,000,000 8)

90 Days allows way to much Freedom to the Debtor

 

[Head Surfer]

Wayne this is your puppy, you can run it anyway you would like; but hope your open for comments; For most of the 20 years I've been in this business, most Lenders use a 30 day billing cycle and this is generally how they attract your service, it's in their letter of engagement. Generally I work on a "pay at the door theme" and only on occassion do I allow credit; based in part on getting jerked around a few years back.

90 Days allows way to much Freedom to the Debtor

If someone pays in 60 days they could be called "slow pay", however deadbeat is a little harsh. I have had some appraisers attempt to post someone two weeks after a debt was due before, so whatever time I decided on would not please everyone.

I have had some appraisers try to abuse the service, especially by not notifying me to remove a name after someone has paid, which is strictly against the terms they agreed to when I allowed them to use the service.

Due to the liabilities and headaches of the deadbeat listings, and the fact that it generates no income from me I am not sure how long I will continue it.

 

[Tiny280]

Wayne:

Thanks for your reply and for maintaining the Deadbeat listing. Those of us who use it LOVE it. Those who don't, should.