promissory note w/ private lender

[Ashley C.]

newbie post. Sorry in advance, I'm still working out how all the contracts, etc. work and how each party is protected and what their options are.

I'm in VA (non-judicial foreclosure), and will be using private lenders to fund rehabs. I understand the promissory note should address how default/breach is handled. In the worst case scenario, where the house just won't sell (retail) and the lender's fed up with waiting, what is his recourse? Can he/she foreclose, with the note controlling the circumstances when they can pull the trigger? Can I use instead a quit claim provision and escrow the signed quit claim?

They'd end up owning a house at 70% LTV or better, but if we already can't sell it, they'd still have to hang on to it till the property finally did move. I'm assuming the lender has hung on through a 6 month loan and doesn't want to take ownership or be a landlord, just wants his money back, but that might not be possible if everything goes to heck in a handbasket.

FYI my exit strategies are straight retail sale, lease/option, sell to another investor to cover expenses.

Thanks for your help! :D