Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 16 of 16 Posts

·
Registered
Joined
·
5 Posts
I am a roofing contractor and lately I have been running into this mortgage company that thinks it has the right to get involved and micromanage every aspect of the construction process. I hope this is not a new trend. It is just absurb that these morons think that they have any business getting in between the insurance co., the contractor, and the homeowner. The real kicker is that not one of my homeowners (unfortunate enough to be involved with these pigs) has ever directly drawn up a mortgage with this company. Anyways they have taken a fairly straight forward process and turned it into one big ball of red tape clusterbuck. The best part is when you finish the job and it is time to get paid for your labor, work, and materials they drag their ass wanting lien releases invoices pictures an inspection, and after doing all that you still get to wait at least two weeks before their office across the country mails the homeowner a check. I am utterly amazed that someone hasn't sued yet. I guess because it is a new scam they haven't burned enough people yet. If you think I am being harsh you should listen to the poor homeowners that have to jump through thirty hoops, turning their insurance money over to these corporate pigs. I am in this business to avoid exactly this kind of b.s. and here I am on job number 6 with these jerkoffs. I would appreciate feedback from others who have had to deals with these scum. Contractors of the world unite!!!
 

·
Registered
Joined
·
523 Posts
I find it common for mortgage companies to be involved, why not? In reality they own the asset. and preservation of that asset is their fiduciary responsibility.
 

·
Registered
Joined
·
67 Posts
I find it common for mortgage companies to be involved, why not? In reality they own the asset. and preservation of that asset is their fiduciary responsibility.
It'd be nice if they took that attitude with finding out the actual worth of the asset they are loaning on. They don't do that. Why should they care about anything except lien releases?
 

·
Registered
Joined
·
2,407 Posts
I feel your pain...and REALLY felt it last year. We had record flooding, 500yr floods they called it which wiped out tens of thousands of homes far away from any water, some neighborhoods got bought out, but plenty were cleaned up/rehabbed and moved back into. I've always told myself, "self-you got burned the last time you did a job involving insurance companies and/or mortaguage companies-so stay away" but then last year sales were kind of slow and there was tons of work to be done regarding flood rehabs.

Here was the best part, I personally got to play banker. The way the mortaguage companies rolled and insurance companies rolled is no money down, no progress monies, no anything until occupancy permit is signed off on and structure is livable again. Now take 12 homes, gutted to rough framing and stripped of ALL electrical/plumbing/HVAC and having to be dried/disinfected then put back together.....to say i was on the verge of losing everything i owned and had worked my whole life for was an understatement, 4 months later i was 6 figures in hock, NO money coming in but sub invoices were i tell ya so i was scrambling robbing peter to pay paul, we worked 73 straight days slipping in jobs to use that moneyt o fund along other job progress...i had no choice but to be very "creative" to be sure the companies i hired got paid, and I have always and will continue to make sure these guys are paid within a few days of them submitting an invoice since I know what it's like to be owed and never know when money is coming in...

Your not alone with your distaste, i think it's a bunch of chit, and if your turning a payment within 2 weeks your working with GREAT mortaguage companies, ALL of mine i had to deal with from the time i submitted the invoice it was 4-6 weeks before they cut a check to remiburse me....and the kicker...they kept a 10% retainer for 90 days to make sure everybody involved had gotten paid....even though they had signed lein releases in hand when i sent my paperwork to them.

Now a year later i look back and smile we were able to get through it, and the term, "what does'nt kill you only makes you stronger" is something i frequently fall back on. The good that came from that experience- i found out emotionally i could get through THE most stressful moment i'd ever experienced in my life, I see now that i have this experience behind me some of the problems i run into since then, are small peas, it really showed me how small many of the things i deal with daily really are for the simple fact i have now gotten through worse...ALOT worse. Plus it reaffirmed i have great people around me and great vendors since i had sit downs with all of them, laid the situation on the line so we all were in the loop about how the financial situation was being played out...and without them being great allies, people would'nt have gotten back into their homes as quickly as they did and i probably woulda had a heart attack from financial stress overload...it was one of my darkest professional moments, but looking back it was a great experience to put under my belt!!! Keep your head up, things will get better, but i agree, we're not banks and i've learned to "compensate" my bids to reflect us being forced to fund these types of projects.
 

·
Registered
Joined
·
212 Posts
When I started my company 8 years ago I thought the best place to work would be new construction. So I focused my attention on getting in with some local GC's.

I talked a GC into letting me give him a bid on his decks and landings. He sent me to a house to measure and give him a bid. So while I am there measuring the landing in the garage the guy doing the house trim comes and asks what I am doing. It turns out that this is the guy that does the decks for the GC. Awkward.

The GC pays this guy $100 per landing. The guy tells me I can the work if I can do it for cheaper. :w00t:

My whole point to this is in business you have to have enough cash flow to keep going. If you are working for peanuts then having to wait 30 to 45 days to get paid you had better have a good cash reserve or credit in place to float you.

As I schedule jobs in I take into consideration when they will fund.

Mark
 

·
Registered
Joined
·
28 Posts
90% of our work is insurance. There are very few jobs that don't have some mortgage company on them. We go thru these stinking hoops every single day. Constantly calling, constantly faxing paperwork...it never ends. Their best trick is when they tell you they can't process the check bcuz they don't have the necessary paperwork....BULL. More times than not, they lost it or say they can't locate it. Probably has nothing to do with its never the same person you speak with, let alone someone in the same city. They also will change the rules as you go, despite what THEIR initial paperwork says. You can do everything they say correctly, but at some point they will say "we don't have this and we need it." :furious::censored::furious:

Insurance companies are bound by law to include mortgage companies on checks when claims are certain dollar amount. Pretty small too...like $7500. Keep in mind this is an amount for the WHOLE claim. Any contents that may have be ruined or if cleaning needs to be done, not just construction work.

IF YOU SEND ANYTHING TO THEM MAKE SURE YOU PUT THE LOAN NUMBER ON ALL DOCUMENTS, SO IF IT DOES GET LOST THEY KNOW WHERE IT GOES.

That being said, they are just trying to protect thier intrests in the property. Usually they own more of it than anybody else and probably deal with thousands of dip-chit contractors. Still, just another item that kills the construction industry. The insurance companies don't care cuz they sent a check and the mortgage companies don't care as long as they get the check.
 

·
Captain California
Joined
·
83 Posts
I recently finished a job where the mortgage company wanted me to sign away my right to lien the property. :eek: Against my better judgement, I signed thier agreement......still waiting to get paid......:mad:
 

·
Registered
Joined
·
402 Posts
I recently finished a job where the mortgage company wanted me to sign away my right to lien the property. :eek: Against my better judgement, I signed thier agreement......still waiting to get paid......:mad:
NEVER sign before you are paid unless forced. If the people are behind on house payments the mortgage company will request this so they can keep the insurance check to catch up payments. If forced to sign release, you write on lien that it is subject to your payment in full per terms of your contract with homeowner and is not valid until you are paid in full.

IndyMac Bank is who I have had the most problem with.
 

·
Registered
Joined
·
28 Posts
There are many that will try to get the un-savy contractor to sign a release of lien. Just make sure it is CONDITIONAL WAIVER upon final payment.

YOU ALL MUST STAY AFTER THEM, CALL EVERYDAY IF NEED BE. ITS THE ONLY WAY. STAY ON TOP OF IT. THEY WILL SHUFFLE YOU TO THE BOTTOM OF THE PILE IF YOU LET THEM.
 

·
Curmudgeon
Joined
·
11,706 Posts
How is any of this new?
Why wouldn't the owner (the mortgage holder)
have an interest?
 
1 - 16 of 16 Posts
Top