Second position hard money loan gone bad. What do I do?

[Patrick McCandless]

I've written this thing off so long ago that I haven't even given thought toward posting about it on here, but maybe someone might have an answer to this nightmare. Here goes.

In 2005 at the age of 18 I tragically lost my dad and he left me with a small sum of money. Nothing major, but if I had it today with the (mediocre compared to most on here) knowledge and experience I now have I can't help but sit here looking at my 4 day old daughter and wonder what I could've turned that into.

NUTSHELL: I loaned $40k of what was left to me from my dad to a guy who stopped paying me. Even though I was in second position behind a (roughly) $150k loan held by Wells Fargo I was advised to foreclose which I did and have been the owner of the property ever since. I've recooped a decent portion of my losses by renting the place out and essentially pocketing the entire rent amount, less maintenance and management fees. Heck, Wells Fargo still pays the taxes on the place. I paid insurance on it for a little bit basically just to protect myself from the renters, not for a loss of the actual property.

The last tenants trashed the place several years back and I had no desire to fix it back up. A little due to the fact it's a manufactured home in bum-f**k nowhere and a little due to the fact that it was still a reminder of what I did with pops' money he left me. My question has always been, "How can I get money out of this place?" I firmly believe the only reason I was able to secure tenants in there in the first place was that they were a retired couple who rented sight-unseen from Michigan. It would take thousands to get it back into decent shape and I don't know that I would be able to secure another tenant to be honest.

Property Info:

1.25 acres of land

5BR/3BA manufactured home 

Something like 2,400sf if I remember correctly

Any help with my options on this would be greatly appreciated. I've always felt like I just tossed his money out the window and it sickens me to think about it which is why I'm just now posting this on here.

Anyways, thanks in advance to anyone who might be able to help.