Do I seek a forfeiture or accept this habitually late borrower's catch-up payment?

[Rob Pattison]

I own a note in Memphis on an occupied rental property.   The borrower lives in a house across the street.   I believe he has family members living in the rental property.   The utilities are in the borrower's name.

When I bought the loan in July of 2022, the borrower was 5 months behind.   He claimed he hadn't received notice of the transfer, or the mailed hello/good-bye letters from the previous note holder and my servicer, Madison Management.  He refused to pay until I had an attorney send him a demand letter.  Then he paid, then filed BK-13.  He has owed me since December 1st.

The court dismissed the BK-13 and I looked for an attorney that would pursue a forfeiture (far lower cost, under $1k) rather than a foreclosure, far higher cost ($5k - $7k+) as my note is a contract for deed, not a mortgage.   The borrower last month sent my servicer a check for $400, which I instructed the servicer to refuse.   The borrower, sensing something was up, then sent my servicer a full reinstatement payment by certified mail for $2k+.   I've instructed the servicer not to cash the check.

The contract for deed states that if at any time the borrower is more than 30 days past due, I can call the entire loan due immediately and obtain possession of the property.

Question:   What would you do in this situation?   Accept the check already sent and wait again for him to be 30+ days late then pounce with my attorney, or refuse the check and seek a forfeiture.

I bought this note for $20k.  The property is worth $60k as is.

[John Slater]

Quote from @Rob Pattison:

I own a note in Memphis on an occupied rental property.   The borrower lives in a house across the street.   I believe he has family members living in the rental property.   The utilities are in the borrower's name.

When I bought the loan in July of 2022, the borrower was 5 months behind.   He claimed he hadn't received notice of the transfer, or the mailed hello/good-bye letters from the previous note holder and my servicer, Madison Management.  He refused to pay until I had an attorney send him a demand letter.  Then he paid, then filed BK-13.  He has owed me since December 1st.

The court dismissed the BK-13 and I looked for an attorney that would pursue a forfeiture (far lower cost, under $1k) rather than a foreclosure, far higher cost ($5k - $7k+) as my note is a contract for deed, not a mortgage.   The borrower last month sent my servicer a check for $400, which I instructed the servicer to refuse.   The borrower, sensing something was up, then sent my servicer a full reinstatement payment by certified mail for $2k+.   I've instructed the servicer not to cash the check.

The contract for deed states that if at any time the borrower is more than 30 days past due, I can call the entire loan due immediately and obtain possession of the property.

Question:   What would you do in this situation?   Accept the check already sent and wait again for him to be 30+ days late then pounce with my attorney, or refuse the check and seek a forfeiture.

I bought this note for $20k.  The property is worth $60k

 If it were me I would call the whole note due. If you aren't ready to do that, then accept the $2k, with a notice that if it happens again you will then call the whole note due.