Note coming up on end of term and unable to pay

[Brad Kellerman]

Last year I loaned a local investor money for a rehab and flip of a small apartment complex. The plan was for it to be a quick project but COVID and other circumstances delayed the project. We are coming up on the notes term, which is a ballon payment, and the investor wants to extend the term since the property has not been sold. The complex has been renovated and is fully occupied so the property has equity.  

Since there is equity I would normally be fine with extending but what makes me nervous is the 1st lender filed a NOD about 1.5 months ago. It was removed after a few weeks and supposedly everything is in good standing now. Any advice how to proceed?