I have owner finance borrower who's balloon note coming due in Tx

[Barry Ratliff]

I hold the note. Borrower cant refi cause of credit.  What are options to renew, foreclose or deed in lieu of foreclosure, etc?

[Bill Gulley]

POINTS are prepaid interest on cash advances, not equity.

You can not charge points on an equity financed note!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Wayne is one of the nails on the head, do you have a legally enforceable note, did you check against the Dodd Frank requirements.

Next, any modification of a note is a new extension of credit, so again you need to check compliance under Dodd Frank.

Since you made the loan, was his credit about the same when the note was made? If so, you failed in taking reasonable diligence in extending credit, it can well be viewed as predatory lending. In which case, you lose, if not all, to some extent. If you go to foreclosure you need to pray the borrower doesn't object and seek council or read posts on BP.

Failure to use reasonable care in extending credit has always been an issue that lenders can lose money on with a seller financed transaction, the sell, finance, foreclose, rinses and repeat stuff is predatory dealing. It's easier to show when the lender-seller has greater knowledge (like an investor) than that of the borrower-buyer.

  http://www.houstontx.gov/housing/predatorylending.html

Even cities are attacking predatory practices!

If the borrower is the walk away type you may get a deed-in-lieu of foreclosure. Check title before you accept the deed or you'll be assuming liens.

I suggest you see a mortgage broker as they may have an outlet for credit issues. If not, see an attorney to proceed (look at the trustee on the deed of trust) or have a RMLO modify the note, fully amortized as you don't live in the subject property.