Borrower renting out property from HML

[Eileen D.]

Hi BP,

My borrower is renting out the property at a note of $3k/month but meanwhile not paying me a cent in interest or the taxes on the property.  Unfortunately, I'm in second position on the note so I'm hoping to avoid a foreclosure and am working with the investor in 1st position to have borrower sign a DIL.  

Has this happened to anyone else; specifically, having a borrower renting out a property and not paying interest?  He is looking for new investments via social networking and I feel like I need to warn other investors of this activity.