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?