When the Facts Don’t Lie: Fighting Baseless Claims the Right Way

In our industry, we expect scrutiny. But sometimes, the scrutiny isn’t just misguided, it’s outright baseless.
Recently, a complaint was filed against my firm, Del Toro Loan Servicing, alleging wrongful foreclosure, fraud, and even emotional distress. On the surface, it may sound like a dramatic David vs. Goliath story. But when you look at the facts, and the 50+ documented communications, legal compliance, and transparency throughout—the truth tells a very different story.

This isn’t just about clearing our name. It’s about how private lenders and loan servicers can and should respond when confronted with meritless legal threats.

The Complaint: What Was Alleged

• Wrongful foreclosure
• Violation of the Homeowner Bill of Rights (HBOR)
• Quiet title, constructive fraud, emotional distress
• Request for declaratory relief

The Facts: What Actually Happened

• A properly executed and recorded Substitution of Trustee gave us full legal authority.
• The borrower was contacted over 50 times with payoff figures, options, and alternatives.
• Foreclosure was postponed multiple times—at no cost—to help the borrower find a resolution.
• We even helped the borrower sell another property to meet a deadline and avoid further loss.
• All activity was fully documented, compliant, and executed with transparency and good faith.

A Retired Judge Weighed In
“Hard to imagine the wrongful foreclosure or HBOR claims holding. You went above and beyond. Your actions would be seen as exemplary—not outrageous.”

Even AI Agreed

I ran an AI-based case analysis to pressure test our position. Score?
9/10 for clarity, legal strength, and documentation.

• High chance of dismissal on all substantive claims
• Strong grounds to seek sanctions for filing a claim contradicted by the evidence
• The only claim likely to linger briefly: procedural declaratory relief (but with no real bite)

This was more than validation. It was a reminder: when you do things right, the truth holds up under scrutiny.

So Why Share This?

Because this is a blueprint for how serious professionals in lending and servicing should protect themselves—and their reputations:

✅ Keep detailed records.
✅ Maintain compliance across all borrower communications.
✅ Be willing to help—even when you’re not obligated to.
✅ Defend your position when it matters, and don’t settle out of fear.

At Del Toro, we don’t rely on confidentiality clauses or quiet settlements to protect our brand. We stand behind our work, we accept responsibility where due, and we seek to eliminate dishonest players from our industry.

If You’re in This Business, You Need a Team That Plays Chess, Not Checkers

Whether you’re managing trust deeds or foreclosing under pressure, you need real strategy, airtight compliance, and the courage to act with integrity. If you’re looking for that level of service and advocacy, let’s talk.

📞 Schedule a Discovery Call
📝 Follow me for real-world legal tips and strategies private lenders can’t afford to miss

Cheers,