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SCAppraiser

Platinum Member
Registered: 02/20/08
Posts: 57
Reply with quote  #1 
We recently did a COD for a client, and the borrower who gave us a check put a stop payment on it.  It seems he got mad at the broker, and the loan fell through.  Do I have any recourse against the borrower?  Thanks for any help.


keith

Platinum Member
Registered: 02/29/08
Posts: 1,289
Reply with quote  #2 

it is against the law to stop payment on a check. You need to make the borrower aware of this fact but then begin negotiating with them. Maybe you can recommend a different broker. Maybe you offer to complete the appraisal and offer to transfer the appraisal to another broker and waive the transfer fee. Maybe they will settle with you for less. If you are flexible and cordial maybe they will be also. If not the DA will take the check and collect in 6 months.

BK43

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Platinum Member
Registered: 02/18/08
Posts: 1,593
Reply with quote  #3 

Please read ao 26 and 27, there are no transfers of appraisals. You can take the borrower to court since you performed a service and it does not matter that they had a falling out with the broker.

future

Platinum Member
Registered: 02/18/08
Posts: 349
Reply with quote  #4 

Quote:
Originally Posted by keith
it is against the law to stop payment on a check.

why can banks do that for you then?
Randy

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Registered: 02/18/08
Posts: 892
Reply with quote  #5 

Send the person that wrote the check a certified mail (make him sign to accept the letter) telling him he has one week to to have a cashier's check delivered to your house/office, if you don't get the check in the specified time period  you will go to go the court house and press charges against him for theft of services. If you don't receive the check... press charges. 

TolietBowl

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Platinum Member
Registered: 02/19/08
Posts: 210
Reply with quote  #6 

TODAY you will need the cash or tomorrow you will see the magistrate.

Benjamin

Platinum Member
Registered: 02/17/08
Posts: 748
Reply with quote  #7 
Future,

It is not against the law to stop payment on a check but theft of service is. The reason banks offer that service is in the event that a check is lost or stolen. Then noone can just go cash the check committing fraud. Stopping payment on the check just to get out of paying someone is illegal.

But I do agree with Keith in that offering other alternatives may be a good business decision. While you cannot transfer the report you can recreate the report for another lender. You could offer a referral of another broker or if they find another broker on their own you could agree to recreate the file free or at low cost and possibly get a foot in the door with a new client.
Devils_Advocate

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Platinum Member
Registered: 02/18/08
Posts: 217
Reply with quote  #8 

How long did you wait to put that check in the bank? 

M_Leggett

Platinum Member
Registered: 02/18/08
Posts: 517
Reply with quote  #9 
Check with your state laws, but in GA that would be theft of services. Send a demand letter with a 10 day period to make it good. After 10 days, turn it over the Marshal or Sheriff. I'd also prepare to file in small claims court. Cost $60 and with good documentation, you'd win. Once you get a judgment, if you can't find any $$$ in bank accounts... have their car hauled off. You will have to pay off any loan if they don't satisfy the judgment. But when all the neighbors see a tow truck pull up and take their car... satisfaction is in the embarrassment.
keith

Platinum Member
Registered: 02/29/08
Posts: 1,289
Reply with quote  #10 

Thank you Benjamin for realizing that I did not state myself in correct USPAP terms. The word transfer should not have been used. I am glad you contributed and realized that I was only trying to help this appraiser "brother".  

future

Platinum Member
Registered: 02/18/08
Posts: 349
Reply with quote  #11 

Quote:
Originally Posted by Benjamin
Future,

It is not against the law to stop payment on a check but theft of service is. The reason banks offer that service is in the event that a check is lost or stolen. Then noone can just go cash the check committing fraud. Stopping payment on the check just to get out of paying someone is illegal.


ahh, gotcha.

thanks for clarifying.

im guessing someone can get themselves in more trouble doing this than just not paying you when they agree.  this seems to be more fraudulent
Gordo

Preferred Member
Registered: 04/17/08
Posts: 31
Reply with quote  #12 

The same thing has happened to me in the past and my lawyer read to me out of a GA law book which stated that if providing a service ordered by another party other than the party receiving the service, if there are returned payments such as a check stop or credit card reverse, then the original party who ordered the service is the only one who can be held accountable.  

Kenneth_Brown

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Platinum Member
Registered: 02/19/08
Posts: 104
Reply with quote  #13 

FYI - Your only remedy will be civil.  In Georgia, a check with a “stop payment” order, return to maker, or improper signature is not covered under the offense of deposit account fraud. The proper remedy for those checks would be a civil proceeding, not a criminal proceeding.  


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Ken
Jody

Platinum Member
Registered: 02/19/08
Posts: 6,789
Reply with quote  #14 

Does anyone have experience with what to do if you recieve a check written on an account that does not exist?


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Woops~ Did I say that????
Kenneth_Brown

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Platinum Member
Registered: 02/19/08
Posts: 104
Reply with quote  #15 
http://www.forsythco.com/pdf/files/Procedures%20for%20criminal%20&%20civil%20prosecution%20of%20Deposit%20Account%20Fraud.pdf

Forsyth County, GA, but similar in all counties.

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Ken
Davidv

Platinum Member
Registered: 02/19/08
Posts: 943
Reply with quote  #16 

I'm real curious to know when it bacame illegal to stop payment on a check.

Randy

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Platinum Member
Registered: 02/18/08
Posts: 892
Reply with quote  #17 
David, stopping payment of a check, in and of itself, is not illegal.  Stopping payment of a check written for services rendered (AKA an appraisal) is the same as walking into a store and  paying for a purchase with a check and when you get home stopping payment of the check used to purchase the product.  It is stealing... in one case it is stealing merchandise, in the other it is stealing your services.  Both are illegal.
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