Foreclosure when Note is due and borrower is still paying monthly interest


#1

I have a 5 year $100,000 2nd TD that was due back in January. The borrower did not pay back the $100,000, but is still making the monthly interest payments on time. Ideally I want to keep the note and extend it, but am without any new contract and he is hesitating on this. Am I in any danger of not be able to foreclose in the future if he keeps making the monthly interest payments?


#2

Without a new contract, you will definitely want to reach out to an attorney who specializes in hard money loans to see what your options are and any risks associated with foreclosing if you continue to accept payments.