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Out-of-state client won't pay...what do you do?

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Douglas Mackay

Thread Starter
Sophomore Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Montana
I did an appraisal for an out-of-state client. Appraisal was within their range and the refi was completed but I've yet to get paid. Made numerous calls and have heard "the checks in the mail" too many times. Now he won't even take my calls. What have any of you done to get paid?

In the future, I'm going to insist on being paid at the door with out-of -state lenders I haven't done business with!

Doug
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Don't laugh....but I was at the end of my rope over a year ago trying to collect from a lender in Illinois. In one of my radical moments, I e-mailed Governor George H. Ryan, as a last resort, and spilled my guts. I received a check from the lender via fedex a week later, and 3 weeks later received a very cordial letter from the Illinois Office of Banks and Real Estate saying the check was sent, and if I didn't receive it, to advise them. What a nice surprise!
 

rtubbs

Junior Member
Joined
Jan 15, 2002
The reason I asked what state was that I have a similar problem with a Calif. lender over a year ago. That problem is what lead me to establishing a firm collect at the door policy. I somehow found the website of Calif. corporations and obtained the company's license number. I then wrote to the company making sure that the license number was prominently displayed in the address line. I explained that if I didn't receive payment w/i 10 days after receipt of the letter (which I mailed certified/return receipt requested), that I would file a formal complaint with the state banking authorities and the local better business bureau. I received my check post haste.

good luck on your collection.
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
When all else fails, I send them a letter (usually by FAX) and enclose "copies" of the letters that I have pre-prepared to whatever banking commission, Better Business Bureau in their area (which you can do on-line), and I also tell them that I am going to post them as a dead beat lender on the Appraisers Forum on the internet - believe it or not, that last one does get them. In fact, if they won't return my phone calls, I leave a message on the phone about the posting as a deadbeat. I then give them a deadline by which to phone me back. It also helps if you have and send along a copy of their order whereby they agree to pay you.

We have stopped doing business with out of state lenders unless we collect at the door. I simply tell them not to take it personal, but we have been stung too many times. There were only 1 1/2 appraisals that we weren't paid for last year following the above steps. The 1/2 was from 1/2 of a divorce (will never do that again) and the other was out of state and their phone was disconnected.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
In some states you can file a lien against the property. Notify the property owner. You have 120 days in most areas I am familar with to file that lien. Nothing is going to get a homeowner foaming at the mouth than to find he has to pay twice for an appraisal and he has a lot more stroke with the lender than the appraiser does.

I am getting junk yard mean. I tried to collect off a local well to do businessman for 6 years. Excuse was that the property I appraised was co-owned with a business partner he had a falling out with and when the dust settled he would pay. This has gone on and on. Recently I turned it over to a red-headed bulldog who has repeatedly attempted to get him to call her back regarding the bill.

Well, to make a long story short, I got an assignment to appraised a tract for him, and told the lender I was owed bucks from years ago and intended to add that to the fee. I did. He had no choice but to pay but did not find out until closing what I had done.

Suddenly he wants to talk to me about it....oh? I haven't bothered to return his calls. He didn't return ours for years.

Yesterday I found out I am about to collect from a 18 mo. old appraisal I did for a policeman....good cop, right?

ter
 

Douglas Mackay

Thread Starter
Sophomore Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Montana
I called the homeowner, told him what was going on...he said they DID consumate a mortgage for refi and had been charged for the appraisal at closing. He in turn called the lender who later called me. They gave me a tracking no for the check that is supposedly sent overnight. We'll see!! :roll:
 
A

Anonymous

Guest
The lender must be licensed in your state and maintain some type of office. You can sue in the local small claims court or you can notify the state banking or mortgage department which may take action against the lender. If the homeowner the lender for the appraisal you have a possible criminal complaint.
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
The lender must be licensed in your state and maintain some type of office.

Really? I never heard that before, Walt. I've done many appraisals for lenders in other states, which I'm sure, don't have any kind of office in this state. :?:
 
A

Anonymous

Guest
Charlotte,
To do business in your state an out of state company needs not only a license but also an address for legal purposes. Sometimes the state license authority has the right to accept service for out of state companies.
 
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