Hard money loan default

[Judy Sumner]

I made a hard money loan and the party has defaulted. I've lent out money several times before, but this is the first time the party has not been able to repay on schedule. It isn't a federally backed loan, so I'm not bound by the COVID-19 regulations, but I don't want to be a jerk. The loan is now 30 days past the due date and we are scheduled to talk tonight. What options can you think of? The loan is secured by a duplex that has equity, but the cash flow is the only income this person has now as her business had to close because of the pandemic. Any creative ideas would be appreciated. I lent the money out of our HELOC, so I am making monthly payments myself. Any thoughts on a loan modification, etc?