They will either redeem (and pay your legal fees as part of the redemption costs) or they will default and hopefully you will get possession.

I would highly recommend that you speak with an attorney that does this on a regular basis to ensure you are protected and to ensure the loan docs are legally binding - the loan docs are of course key to ensure that you have documents you can execute on in the event of a default (mortgage, note, assignment of rents, personal guarantee, etc.). 

Eric - This is why i defaulted here, don't really know where to go and who to talk to.

It will further say that these events of default give the lender the right to accelerate the note IE all due an payable upon the event of default. but not the OBLIGATION to do so.. 

I can't contribute more money at this time so have no choice but to be in "default".Besides not being able to collect distributions, if the project goes under, will I at least be entitled to my original investment amount if there are funds left over to return investor capital?

Of course if there is no capital to command at all because of some terrible circumstances then there is no hope for any solution and they default to being the victim of whatever circumstance is presented.There are many different ways to handle a foreclosure situation depending on the circumstances.

we've been a few times. http://www.baltimorereia.com/strategies-harford-meeting-default/

Borrower was in default but had to go through quiet title process since the mortgage was not valid since it was recorded prior.

The couple is divorced. both names on the mortgage. went to auction for foreclosure now. some equity for the owner probably still in property. existing/defaulting FHA loan at a low rate. 

Also I am in Hays county in Texas.Pre-foreclosure is the time between your notice of default and the loss of of the property.The terms are interchangeable as someone will say they are in foreclosure, which others call pre-foreclosure.