:-)A little background...I have been involved in buy-to-let real estate for the past few years in South Africa (Cape Town, Johannesburg and Port Elizabeth).

If you rent it for 3 more years that may not apply.

You can always go to your bank and have them send a denial letter for the loan, saying that they will not lend you the money due to the property not appraising for the value originally applied for. they then have no case against you and also have to return your earnest money.

While they will be involved as much as possible, their primary contribution is the connection to unusually great financing (through family and family friends). 

Neither is inherently better, foreclosure may take more time because the bank is involved, but if they are both good deals both are fine.

I am involved in real estate with some family rentals and I'm working towards investing myself.

I guess I'd be willing to be involved in the "risk" as for as a partnership that involved developing the land.

Any advice would be helpful, Ghostbusters, new or old, need not apply.

In the end, the late payment is now applied and my PM collects 10% of everything thing collected which I’m ok with.

Maybe I will be more involved in the future.