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Mortgage Servicing

Mid Pac Funding is dedicated to the well being of your investment. As such, we directly oversee the servicing for your investment.

You can expect the following from your servicing agent:

Collection of monies from the Borrower in a timely manner according to the terms presented in the promissory note.
Any monies collected on a monthly basis will be deposited to your bank account or mailed to you via US Postal service within 2 business days of their receipt by the Borrower (whenever possible, these funds are disbursed the same day).
In the event that the Borrower is late as set forth in the terms of the Promissory Note, Mid Pac will immediately inform you with the reason for lateness as well as an anticipated payment date. Further, a late penalty will be collected, as set forth in the Promissory note, and disbursed to the Lender(s) according to the servicing agreement.
If the Borrower fails to pay within 3 days after their courtesy period has expired (as set forth in the promissory note), a written “Notice of Non-Payment” will be served. This will serve as the 30-day notice to bring the note current or to risk possible foreclosure proceedings.

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At the end of the year, the servicing agent will provide every investor with a 1099-INT to show them how much they have earned from their private investments over the course of the year. Further, each borrower will receive a 1098 from you, showing what they have paid. As the preponderance of our loans are interest only, this amount should be the sum total of all the interest checks you received throughout the year. Please check with your accountant if you have any questions on this.

Check here for a glossary of real estate terms.