We Had a Default Exit Fall Through - #274

2025-05-27

We Had a Default Exit Fall Through - #274 In this episode, we break down a real-time default scenario that's still unfolding—and getting messier by the day. From missed payments and incomplete renovations to a borrower secretly moving in and filing bankruptcy, this loan has had every complication imaginable. We walk you through how we structured the original deal, what went wrong, and why our exit strategy—selling to an investor buyer—completely fell apart at the 11th hour. If you're a private lende...

We Had a Default Exit Fall Through - #274

In this episode, we break down a real-time default scenario that's still unfolding—and getting messier by the day.

From missed payments and incomplete renovations to a borrower secretly moving in and filing bankruptcy, this loan has had every complication imaginable. We walk you through how we structured the original deal, what went wrong, and why our exit strategy—selling to an investor buyer—completely fell apart at the 11th hour.

If you're a private lender, these situations will happen. Understanding how to manage a default from a business—not just legal—standpoint is critical. We cover:

✔️ Why defaults are inevitable (and how to prepare)
✔️ Lessons learned from a 3-year problem loan in Maryland
✔️ How bankruptcy filings complicate workouts
✔️ Strategies like Deed in Lieu, discounted payoffs, and foreclosure
✔️ Why borrower cooperation is everything

Whether you're new to lending or a seasoned investor, this episode will give you real-world insight into navigating distressed loans and finding profitable exits.

👇 Let us know in the comments: How would YOU handle this situation?

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Are you a new or experienced private lender or hard money lender? Join Jason Balin and Chris Haddon from Hard Money Bankers as they draw from their extensive experience running a successful hard money lending company since 2007. Tune in weekly with episodes related to all aspects of private lending. From discovering lucrative loan opportunities to securing private capital, effectively managing your loan portfolio, handling defaults, and much more, we've got you covered.

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