Posted by Gavin Wilkinson on August 09, 2003 at 17:21:28:
I don’t wish to be down on you, because I wish you the best.
However, what was your exit plan? Every business idea must have a failure, or backup plan. The backup plan for a mortgage is to forclose on the property. If you are in California, as I am, a forclosure would take about 4 months. It would start by recording a notice of default. There are companies that will guide you through the process or even do it for you for a fee.
If you record a notice of default, this will trash your investors credit, as most banks will not loan to someone with a notice of default on their credit. So when you start foreclosure, expect your investor to hate you and not cooperate with you any more.
If I was in your shoes I would arrange a meeting face to face with her. I would politely and respectfully remind her that the note is past due and give her a short deadline to refinance. If it does not look like you are about to get your money by the deadline, start the foreclosure. There is nothing else you can do. Business is business. Why feel bad? She made her end of the bargain and is failing to live up to it. If you cannot perform, don’t sign a contract!
If you are not going to foreclose, have her sign a loan extension, collect a fee for extending the credit, and stop calling her every week!