WHY DO YOU NEED MY EMAIL ADDRESS?
We do not send spam or share your email address with anyone. We use email to deliver statements, deposit notifications and critical account information. In an effort to EFFICIENTLY increase communication during today’s ever changing economic environment, we will use email to keep in closer contact with our clients.
IS DEL TORO LICENSED AND INSURED?
Yes, Del Toro is licensed by the Department of Real Estate and carries Errors and Omissions insurance. We are audited on a quarterly basis to insure the accuracy and transparency of your transaction.
WHEN ARE PAYMENTS POSTED?
We post payments as received, throughout the day. Payments are credited the business day on which they are received. They are posted to your online account by 6:00 p.m. PST.
CAN A BORROWER SETUP AUTO-PAY THROUGH DEL TORO?
Yes. By clicking the “Make a Payment” link on our homepage you can follow a few easy steps to setup a one time or recurring debit.
CAN LENDERS RECEIVE THEIR PAYMENTS VIA AUTO-DEPOSIT?
Absolutely! This is our preferred method as it saves you time and money and still provides a detailed check stub via email. Please contact one of our Loan Servicing Representatives and ask about enrolling in this service.
DOES DEL TORO MAKE INTEREST ON OUR MONEY WHILE IT SITS IN OUR ACCOUNTS?
No. We are required to hold funds in non-interest bearing & audited trust accounts. These accounts are subject to significant regulation and oversight, and routinely audited to ensure compliance.
WHEN IS A PAYMENT CONSIDERED LATE?
A due date and the terms of the grace period and late fee are specified in the Note. If there is a grace period, the late fee will take effect after midnight on the last day of the grace period. Payments must be RECEIVED by our office prior to this time to avoid a late fee. Mail delays or online payment issues are the responsibility of the Borrower. It is the borrower’s responsibility to ensure the payment is received by Del Toro Loan Servicing, Inc., in a timely fashion.
HOW CAN I TELL IF YOU HAVE RECEIVED A PAYMENT?
As a Lender or Borrower, you can view account activity on our website (visit our homepage). The website is updated with all of the day’s activities by 6:00 p.m. PST.
BESIDES THE WEBSITE, WHAT OTHER WAYS CAN WE FIND OUT IF A PAYMENT IS PAST DUE?
Del Toro will notify both Borrower (via mail and email) and Lender (via email only) on the 15th of the month if the account is delinquent. We will also follow up should the account turn 30 days delinquent and then every 15 days thereafter. Please use our website to check status whenever possible.
HOW DO WE UPDATE OUR CONTACT INFO?
Please contact our office at 619-474-5400.
DOES DEL TORO REPORT TO CREDIT BUREAUS?
This depends on your specific Lender. Please refer to your loan documents or Broker for verification.
HOW ARE BORROWER’S PAYMENTS APPLIED?
Payments received will be applied in accordance with the terms of your mortgage note. In most cases, the mortgage note will require that funds, be first applied to any payments past due. Once the account is current, any additional funds will be applied to interest, any outstanding fees, costs and advances, prior to being applied as a principal reduction.
CAN A BORROWER SEND IN EXTRA MONEY?
This is known as a partial prepayment. The extra money may be applied assuming your loan is current and has the standard application requirements, (please check your Note, Mortgage and any applicable Riders for details) any amount over and above the regular payment amount will be applied first to any outstanding charges (late fees or interest) and then to principal. Also, if your Note has a prepayment fee, the extra monies sent could trigger that fee. Please check your note to verify there is no prepayment fee before sending extra money.
DOES DEL TORO ESCROW FUNDS FOR TAXES AND INSURANCE?
For an additional fee, we will. We do require the Borrower or Lender to provide us with the invoices to be paid NO LESS THAN 30 days prior to their due date. After faxing or delivering the tax or insurance bill, please contact our office to verify the receipt and pending payment of the related invoice. We are not responsible for fees or penalties if we did not receive the necessary invoices and/or funds no less than 30 days prior to their due date.
HOW CAN AN IMPOUND ACCOUNT BE CANCELLED?
We must receive written instructions from both Borrower and Lender.
WHAT TYPE OF YEAR END STATEMENTS WILL I RECEIVE?
Borrowers will receive 1098s and Lenders, 1099s. We must have an IRS W-9 for on file for you in order to send these to you. All clients will receive a year end summary of all activity.
WHAT IF SOMEONE IS WILLING TO ASSUME A LOAN – EITHER AS A LENDER OR BORROWER?
Re Borrower: We can prepare the necessary papers to complete an assumption, assuming Lender approval. Typically, the Borrower is responsible for the fees associated with the transaction. Costs can range from a few hundred dollars to a percentage of the loan amount.
Re Lender: Should a Lender wish to assign their interest, we can prepare the necessary documents, obtain the proper title company endorsements and escrow the transaction.
WHAT IF A BORROWER IS EXPERIENCING FINANCIAL HARDSHIP?
Please use the link on our homepage to access important information. What is the difference between the current principal balance and the payoff amount? The loans payoff can include many things like: late fees, account closing fees, deferred or accrued interest and advances made by the Lenders or Servicing Agent. A formal “Demand for Payoff” should be requested if you plan to pay a loan in full. Regardless of the circumstances, a borrower experiencing financial hardship should contact Del Toro Loan Servicing, Inc., as soon as possible, as there may be options available. Additionally, if your loan becomes delinquent, your lender generally has the option of foreclosing on the note immediately. While we cannot promise success, we can assist you in trying to avoid a foreclosure. We cannot, however, offer legal advice.
WHAT IS ACCRUED INTEREST?
This is the interest incurred from the last “Paid to Date” up to the date another payment is made. The currents month’s payment is for the prior month’s interest.
WHAT HAPPENS WHEN A LOAN IS PAID IN FULL?
Del Toro will disburse funds to the Lender(s), release the lien on the property and deliver any overage of funds back to the Borrower.
WHAT PAPERS OR FORMS WILL I RECEIVE FOR MY TAXES?
In additions to monthly statements, you will receive a year end statement and a 1099 (Lender) / 1098 (Borrower).
WHAT IS A LENDER?
A lender (also known at times as a beneficiary) is a person, group of persons, or business entity that has agreed to lend money to a borrower at a specified interest rate. A lender traditionally only will execute loans with borrowers who have property (real estate) that they can pledge as collateral to the loan. Many persons who are not financial institutions choose to become lenders because it is an attractive investment opportunity that provides some degree of security vis-à-vis the property pledged as collateral. Lenders generally are sophisticated investors or groups of investors who contract with loan servicing companies, such as Del Toro Loan Servicing, Inc., to service their loans. Servicing a loan includes collecting monthly payments, forwarding those payments to the lender(s), maintaining impound accounts, and handling regulatory paperwork such as regulatory filings, etc. The Loan Servicing company also serves as a liaison between the borrower and the lender.
WHAT IS A BORROWER?
A borrower (at times referred to as a trustor) is a person who is in need of money, and is willing to pledge collateral and pay interest in order to gain access to a lump sum of liquidity (money). Most lenders who provide hard money loans are individuals or groups of individuals who are sophisticated investors. Once a borrower executes a loan agreement with a lender, the loan is processed and serviced through a Loan Servicing company. The borrower is required to make monthly payments on the loan according to the terms of the Note. Late payments can and do incur extra fees and penalties, and can result in the lender foreclosing on the property that has been pledged as collateral for the loan. It is important for the borrower to maintain close contact with the Loan Servicing Company, and to alert the Loan Servicer of any anticipated difficulties as soon as they arise.
WHAT IS A BROKER?
A broker is a person or entity who brings borrowers and lenders together in order to arrange a loan. A broker typically will arrange for the loan to be serviced through a Loan Servicing Company, such as Del Toro Loan Servicing, Inc.
WHAT IS A LOAN SERVICER?
A loan servicer is a company that is licensed and bonded and experienced in handling private lending transactions. A good loan servicing company, such as Del Toro Loan Servicing, Inc., will collect monthly payments, will enforce the timing requirements of the payments, will notify the lender and the borrower when a payment is late, and will provide answers to many questions that a borrower might have regarding his/her note. A good loan servicing company will also maintain any necessary impound accounts, handle any necessary filings, ensure that the borrower and lender are in regulatory compliance with all of their necessary filings, and ensure that the transaction is handled professionally, and with integrity. A good loan servicing company will also try to work with borrowers and lenders to assist in restructuring certain provisions of a loan in the event the borrower encounters financial difficulties. It is critical that the borrower and lender stay in contact with the loan servicing company, advise them of any difficulties in a timely fashion, and keep the Loan Servicing company apprised of any changes in critical information such as change of address, contact information, sale of the Note to a third party, or any attempt to assign the borrower’s obligations pursuant to the Note to a third party. A Loan Servicer cannot and will not provide legal advice.