I sold my veterinary practice in 2010. As part of the sale I carried back a 5 year balloon note in the amount of $90,000. The balance of the financing was done through a Title 7 bank under the auspices of the SBA.
The note has been in default since Aug 1,2015.The debtor continues to make payments on time but can't/won't refinance the $90,000 nor will they agree to a significantly increase rate of payment. At the current, I won't live long enough to ever collect the principal.
In the interim since August they have tried to refinance their entire indebtedness package, $660000 to no avail. At one point in that process, they were able to pledge $ 340000 in security for the loan.
I have been advised that since they are making payments, the only other option I have is to foreclose but that I must be prepared to assume their entire first mortgage
. I am in no position to do that nor am in a position to assume the responsibility of full time practice.
The practice is up and running and making money.
Is there no way to force this issue and , at least force them to step up a more rationale payment schedule.?