Full Bid Approvals not Reasonable per HUD - REO Property Preservation Forum
 
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post #1 of 10 (permalink) Old 01-05-2016, 02:22 PM Thread Starter
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Full Bid Approvals not Reasonable per HUD

Getting charge backs on Full Bid Approvals from 2012 stating per HUD "fair and reasonable price should be...". Isn't it reasonable to expect payment per a Full Bid Approval if quality is not the issue?
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post #2 of 10 (permalink) Old 01-05-2016, 02:27 PM
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Getting charge backs on Full Bid Approvals from 2012 stating per HUD "fair and reasonable price should be...". Isn't it reasonable to expect payment per a Full Bid Approval if quality is not the issue?

This is good for all the Invincible newbie's to see.

As you put together your business plans set some money aside for things like charge backs and no pays.
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post #3 of 10 (permalink) Old 01-05-2016, 02:48 PM
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So, there is no legal presidence with a deadline on chargebacks? Just asking as a new guy reading through. If you push your job through with the proper docs, you get paid, maybe limited warrenty on your work. It has to stop at some point. Really, how could you be charged back for something ten years ago. But, a slush fund should be set aside for things like this even though I don't agree with it.
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post #4 of 10 (permalink) Old 01-05-2016, 03:23 PM Thread Starter
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In the real world it's called a reserve for bad debt account. A set aside. This industry is not real world. Nationals think "we give you a lot of money, or you make a lot of money off us". Yet, if someone profits from the work you do, who makes money off who?
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post #5 of 10 (permalink) Old 01-05-2016, 03:56 PM
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I wouldn't put up with it.

I would send them and the client a notice, a bill, a demand letter complete with nonrefundable added fees, and immediately put them on hold ang begin legal collection processes. But, I'm funny like that. I don't care how much work they give me or how much it costs me. If the bid was approved and paid, and a reasonable amount of time had passed, a judge would decide it.

In most cases these companies are not even licensed or registered to operate or sub in your state, that's a pretty big strike against them right off the bat.

Don't get me wrong though, if its $50 or something, I would find a creative way to make it up. If it's real money they would find out very quickly that my little war of attrition would end up costing them a lot more.

All of these companies might seem like they have the upper hand, but they all have a weak spot, or something to hide.
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post #6 of 10 (permalink) Old 01-05-2016, 04:35 PM
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Say I have a shot at installing new electrical service for a major grocery chain going up in a nearby town. I ask for bids from several subs. I take one for 23k and bump it 20% and after approval, complete the work and get paid.
Two weeks later the store owner thinks I ripped him off, stops pay on the check and demands I refund him $5700. I short my electrician his final draw and pay back the money to the store owner.
In the real world, the sparky burns my house down, kills my dog and drags me into court by the short hairs. Then I have to pay him too.

What does your contract say?
Where is the paperwork showing proof that HUD is doing this?


OP, ask yourself, if HUD was demanding money back due to what they felt was an overcharge from 4 years ago, why is the money coming from you?
What if your regional jacked the price of your bid, making $ off profit and your discount? How do you know you aren't covering the difference?

Short answer is regionals do this because they can and subs let them.
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post #7 of 10 (permalink) Old 01-05-2016, 04:56 PM
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Heck no. Does an approval mean nothing? If they felt the price was unreasonable, then they shouldn't have approved it.
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post #8 of 10 (permalink) Old 01-05-2016, 06:55 PM
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what company is doing this to you?
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post #9 of 10 (permalink) Old 01-05-2016, 09:30 PM
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what company is doing this to you?
ALL of them. Every single one!
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post #10 of 10 (permalink) Old 01-05-2016, 11:09 PM
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Heck no. Does an approval mean nothing? If they felt the price was unreasonable, then they shouldn't have approved it.
Ha! Much to learn in this industry. We seriously don't make up what we say about this industry, the regionals, or their crap.

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If not satisfied please returned the unused portion of the product and we'll return the unused portion of your money.
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