Recognising Time for Capitulation

[Sean M.]

Hi,

I've got a number of notes, most of which are (so far) going reasonably well, however, I've got one that is just lagging the rest - it was a non-performing 2nd and the 1st has got in the way, making a short term foreclosure or work out unlikely.  To be honest, it's the last of my non-performing notes and as soon as I started buying performing notes I released my preference for performers.   I was in cheap and at this point I'd be happy to just get this off my books - though when I'm less fed up with dealing with it, I don't want to pass up maximising my return. 

Enough NPNs don't pay out that people must have a rule of thumb regarding when to walk away - what are your thoughts?  It costing me $40 a month to hold it, I'm in for $4,000, plus some future legal if I hold it.  Are there some good rules of thumb for when to capitulate?  I'd rather focus on the performers (and if you get into the note game at some point @Dion DePaoli will likely tell you of the benefits to performing - he's right), but I'm having trouble knowing when I'm cutting my losses (ok) versus quitting on a note (not ok).

Thanks