Default on Hard Money Loan in Seattle

[Armin Hamba]

I'm working on a fix and flip in Seattle with Eastside funding as the hard money lender.  I ran into financial issues during the project and do not have the cash to finish the project. The property was purchased 5 months ago with 10% down payment.  The lender has been getting the interest payments on time and I never fell behind on the payments. My attorney recommended that we reach out to Eastside and offer Deed in lieu of foreclosure and cut our losses. 

Question - Is Eastside likely to accept the deed in lieu or will they be more likely to move forward with forclosure and pursue any deficiency judgement in court? Has anyone had experiences dealing with Eastside with similar situations?  

[Nghi Le]

Can you help us understand the numbers? 

Purchase price

Rehab spent

Rehab remaining

ARV

As-is value

Payoff

There also may be an opportunity for another investor to buy you out. But again, the numbers would dictate that.