Who are my servicers/trustees and what do they do?
Once the loan is made, the collections are made to Medallion Servicing, LLC. Payments are made into this audited checking account and then disbursed to the investors. The servicing fee is paid directly from the account. For tax reporting, the amount actually paid to the investors is reported to IRS at the end of the year. The servicing fee is reported to the IRS as income to the servicers. This account is audited by a licensed CPA and reported via DRE 852 and DRETAR reports, which are available in our office for your review.
What happens if the borrower misses payments?
If a payment is missed, then Medallion Servicing LLC will contact the borrower to determine the reason a payment has not been received. We will then determine what the borrower intends to do and proceed to commencement of foreclosure, if necessary. Medallion Gold will advise the investor of the status.
What documents protect my interests?
The investors’ names are on the note, the deed of trust, the title policy and the casualty policy. The originals are maintained by Medallion Gold unless only one investor owns the loan and then the investor may keep the original documents. For your information, all of the documents can be reproduced, if necessary.
How can I use IRA funds?
A procedure is already in place for IRA funds if the administrator is IRA Services or Pensco. For example, if the administrator is IRA Services, then the note, the deed of trust, the title policy and the casualty policy will be in the name of “IRA Services, Trust Company, fbo [name of the investor].” Our staff will assist you in setting up an account with an IRA Custodian.
What’s the minimum that I can invest?
There is no exact minimum, but it is preferred if $25,000 or more is invested on a particular investment.
What is the normal term of a loan?
Most loans are written for 5 years.
Can I pay it off early?
Yes, a loan can be paid off early. Medallion Gold has determined that it is wise not to charge a prepayment penalty.
What if I can’t make my payment?
If a borrower cannot make a payment, then there will be a discussion to determine how best to resolve the problem.
Typically, missing payments means the borrower can not afford the property and the borrower should sell the property to recover the equity and to payoff the loan. The lender always has the recourse to commence foreclosure and sell the property at foreclosure to recover the money that the lender lent to borrower.