Hey there,
I've got private lenders who made me loans on some real estate projects that are going sideways right now. The asset is a 3 million dollar apartment building, and the first and second lien add up to about 2.4 million. The third lien (my private investor) has about 600k into the deal.
We are already in default on the second lien for being past due on repaying the note, and they are ready to start the foreclosure process. If the first and second lien foreclose, the third lien will be wiped out.
My question is related to the third lien holder. Is their only recourse the foreclosure path? Can they go after my business or us personally for their loss? We did personally guarantee the debt, so I think the answer is yes. Should I wait to file bk until we see what they are going to do?
I've got private lenders who made me loans on some real estate projects that are going sideways right now. The asset is a 3 million dollar apartment building, and the first and second lien add up to about 2.4 million. The third lien (my private investor) has about 600k into the deal.
We are already in default on the second lien for being past due on repaying the note, and they are ready to start the foreclosure process. If the first and second lien foreclose, the third lien will be wiped out.
My question is related to the third lien holder. Is their only recourse the foreclosure path? Can they go after my business or us personally for their loss? We did personally guarantee the debt, so I think the answer is yes. Should I wait to file bk until we see what they are going to do?
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