I have spoken to many active investors that filed bankruptcy in the financial crisis.  

This is what I think I know:- The borrower can choose to pay off the note at any time (by selling the property or just paying off the loan with other funds), so it is important that the legal balance covers my investment and some profit- The borrower could file bankruptcy (can someone confirm that this will only cause delay, but not jeopardize ultimately collecting the legal balance of the note)- Most of these DOTs will have a rent assignment clause, so I could try to enforce that and collect rents from tenants (essentially manage the property) while I am holding the note and trying to foreclose.

But SEC lawyers assured me that it's all negotiable. 

Our lawyer wrote up the loan doc, they borrowed $60,000 to renovate 123 main st, I got first position lien on 123 main st, they paid $500/month interest and the $60,000 lump sum back after 12 months.

If there’s any equity get your lawyer in to court and try to place a lien on them. 

He needs to get advice from a lawyer who can advise him on whether to file a legal action or not. 

I was not able to sue because lawyers thought he would be uncollectable and the county prosecutor's office stated that since it was a breach of contract it was not a civil matter. 

This is the oldest professional tenant trick in the book, but you should definitely get a lawyer on board now.

Or the market goes crazy and the property value goes way up but she says she gets all the gained equity because she's been paying the whole mortgage all this time and she's dating a lawyer now who is on her side... 

Should I hire a lawyer or find a property management company to handle eviction.