Forclosure vs Deed in Lieu

[Account Closed]

I hold a note(deed of trust), within my SD-RA, that is due at the end of January 2013.
The debtor, a Real estate investor LLC, states that they can not repay the note because they have not sold the house and that they want another extension. The note term was 6 months and that was 20 months ago. They have a tenant in the house who has a lease purchase agreement(18 month) that also expires the end of January. The investor advises that the tenant needs another 3 months to repair their credit, then another 45 to 60 days to close a mortgage. The investor states that the tenant wants to but the house and the investor is making monthly interest payment on the note.
I am not inclined to allow any more extension due to the length of time that has already passed and the fact that the tenant still can not qualify for a mortgage.
So if I do not extend the note would it be better to foreclose on the property or take back the property via Deed in Lieu of foreclosure?

[Jon Holdman]

I've been in your position. I did a deed-in-lieu. Its quick and easy if the borrower cooperates. If the borrower is uncooperative, you have no choice but to foreclose. So, the real factor is whether or not the borrower is willing to do the deed in lieu.