Would You Bill The Lender Or "eat It"?

[Ron Little]

Accepted an assignment for a 3-plex. Told it was owner occupied. Was to meet owner there at a specific time. I arrived at the subject property at agreed upon time, he called me on my cell to inform me that he was running late; so I proceeded with the exterior inspection, once he arrived the entire inspection was completed.

To make a long story short... it turned out it was not owner occupied. He just wanted the owner occupied rate...claiming he was PLANNING to move in soon.

I told the lender at Sam's Used Auto World (just kidding).. that I was not going to catagorize the property as owner occupied. Lender cancelled.

Question: I charge $600 for triplex appraisals. what would all of you charge the lender (who I am sure will not pay) for my time. Would any of you simply not charge and "eat it"?

...and no...it was not COD (darn it!!)

 

[CANative]

If he's not going to pay it, send a bill for the entire fee. Do it right away. Maybe he'll have you proceed with the appraisal on COD terms.

If you want a least a chance of being compensated for your time send a bill for an inspection visit and file prep. $100-$150. Send a copy of the engagement letter/order form along with the invoice.

 

[CANative]

I have a feeling that multi-family properties in the Sacramento area are not overly complicated.

 

[Ron Little]

Thanks Greg. Good idea about sending the order form w/invoice.

Bennie,
Yes I have heard of a trip fee. Not too sure what you mean by "yet you are doing units on your own".

 

[Pat Butler]

Did you actually complete the appraisal? If not, I usually bill out misc work at $75 per hour. A few hours for your inspection and driving etc? $150

 

[Ron Little]

Greg and Bennie,

You are both right. The cat is out of the bag... I am a trainee and this is my very first assignment. It is a 3 million dollar triplex with 8 units and it is FHA on acreage. I guess I should do a land appraisal with a Rent Survey. What should I check on VC-127? "yes", "no" or "n/a"?

 

[Farm Gal]

Nice response Ron! Ya want me to move this to the newbies forum so the old hands don't get thier panites in a wad over that remark?

OK you guys settle DOWN.

If we are sniping at each other in here, who's gonna watch your back out in the REAL war? :blink:

Ron asked a legitimate question: WHAT (as a percentage of value or dollar indicated portion of his originally posted fee) would YOU charge. Do you ever eat one?

Ron,

Yes I have eaten an inspection fee or two in my day: IT DEPENDS on hte specific case.

In this one : I'd figure a base price for my initial inspection and preinspection work which may vary based on travel time, and what available public and privately acquired data on the subject caused me to do "how much" work preinspection!

I would NOT omit the fee for inspection in this case.

Fraud and or contemplated fraud and decption on the part of the borrower means that the cleint ought to screen their customers more carefully AND that IF the cleint needs to eat a portion of my originally contemplated fee as a result, that is the cleint's issue NOT MINE. Thye should have had credit report showing residence and other information prior to ordering the appraisal. They shold also collect from their prospective cleint if the ******* filled oout a fraudulent loan ap :idea:

Ba- ding.

 

[CANative]

:rainfro: :rainfro:

Hey, wait a minute. I didn't post anything negative.

:dance:

 

[Tim Hicks (Texas)]

That Greg is a trouble maker! Probation? Suspension? Pitchforks and torches?

Ron,

If you were concerned about collecting the fee, why let the lender have an opportunity to cancel the order? If all you are concerned about is a trip fee, then bill the lender.

Personally, I would have completed the assignment with no owner occupancy checked because it was not my fault the borrower was less than honest and it is not the appraiser's decision on whether the loan is made or not.

 

[Pamela Crowley (Florida)]

#1 = COD - COD - COD FROM NOW ON!!!

#2 = Once you have the money, you complete the report and deliver it - honestly and ethically and never have any problem with collecting your fee.

#3 = Now that you didn't collect your fee and the fraud wannabes cancelled the order because you wouldn't join them in the mortgage fraud, I would send an invoice for at least $300 for my time, include a copy of the order with it and a letter dated 1 week ahead to your state Attorney General regarding them trying to involve you with mortgage fraud. This stands a good chance of getting the money for you. After the week is up, send the letter to your state AG whether you do get paid or not.


Oooooo, I can be nasty! :twisted: