Trip Fees for FHA

[Victoria LaFave]

Could anyone out there enlighten me about trip fees and the charging of them when it comes to FHA appraisals. I believe I once read somewhere in this "forum" that if the borrower does not pay the fee for an appraisal, the lender is obligated to pay it. Does the same thing apply when the appraiser has showed up to the subject and the owner is a "no show"? I recently got an appraisal for a multi where the owner lived out of state and he asked if he needed to be there and I told him that I would prefer that he was because of the obvious reasons: payment, questions about the operating statement, etc. He never called to cancel the appraisal and did not show up either. Now I am told by the lender that I should send the owner an invoice charging him for the trip fee. Its not likely that he will pay it, so what recourse do I have, if any?

 

[Metamorphic]

I'd say that fact that you havent turned in a report (or done the inspection yet) but that you do hold the assignment number is your leverage for eventually getting paid for the report including the trip fee.

 

[OSU Beavers]

The lender is your client.

 

[Matt Mattina]

Next time, you might consider drafting an engagement letter for the lender/client to sign with cancellation terms agreed to in advance. Mine reads something like "assignments cancelled after inspection are subject to no more than 50% of the fee / after the opinion of value has been developed 100% of the fee"

Then you have a fee agreement (contract) that can be enforced.

 

[Webbed Feet]

Ms. LaFave,

A mistake was not telling the owner the owner, or representative of the owner, was REQUIRED to be there.... not preferred. I find another mistake is not asking out of State owners to sign a contract, provide payment if it is CAD before the inspection, regarding their responsibilities and fax back their signature on the contract..

What is happening is all the mortgage clients out there really do NOT have these people commited to moving forward on the loans. The people get "buyers remorse" and stiff the appraisers. Then the appraiser has no written contract with that client regarding what happens then and who is to pay it...

Webbed.

 

[Mike Boyd]

I presume it was ordered COD.

Big mistake. You told him you "preferred" him to be there. That gave him an option.

Have you completed the 1025? What does your client have to say about it?

If you had to sue in small claims court there is a chance you would win. It depends on the judge. The fact that your client ordered the appraisal, COD or not, gives them an element of liability for your fee. It was not YOUR fault the owner did not show up. Your client did NOT tell you to cancel it. You would be better off in court if you had completed the report but take your field notes, photos, sketch, all your research with you. Your position must be that the CLIENT ordered the report and it was for them. They elected to pass off the responsibility of paying for it to the borrower. The borrower did not want to accept that responsibility. So, THEY, the client, must pay you.

 

[Victoria LaFave]

What are my options? What steps should I take? I did do the inspection and most of the data before hand. The lender tells me I will be compensated for my efforts and then turns around and tells me that I would have to send an invoice to the borrower about payment. I have saved all the emails that I have received thus far from the LO and intend to ask once again for payment from them. I just not sure how to proceed.
Victoria LaFave

 

[Lee Lansford]

What are my options? What steps should I take? I did do the inspection and most of the data before hand. The lender tells me I will be compensated for my efforts and then turns around and tells me that I would have to send an invoice to the borrower about payment. I have saved all the emails that I have received thus far from the LO and intend to ask once again for payment from them. I just not sure how to proceed.
Victoria LaFave

See post #4.

These matters are best taken care of at the beginning of the process.

 

[CANative]

The type of brokers/lenders/borrowers that do this type of thing aren't going to sign contracts and engagement letters.

This is just the cost of doing business.

 

[Webbed Feet]

<....snip......> I just not sure how to proceed.
Victoria LaFave

Ms. LaFave,

Not to worry! ... I predict you will allow yourself to get screwed like this four or five more times ..... after that you will certainly figure out how to proceed.

Webbed.