How would you handle a request for extension on unsecured loan?

[Rebecca Lujan]

I loaned money out of my self directed IRA for an unsecured loan that the borrower did not pay by due date, which was yesterday, 2/1. I was the one who reached out to the borrow, and I did receive a response via text with a request for a short extension. I'm fine with an extension, in writing, but would like to know how you would write it, especially if you see red flags?

[Rebecca Lujan]

Update-I spoke with her yesterday and feel more positive about repayment, but less on the rehab, so it's a toss up. We have another call scheduled for today to confirm repayment.  

Each of you has struck a cord on different aspects of what to consider and what to do going forward which is what I was hoping for. Thank you so much!

@Bob Stevens thank you. I was starting to think about the attorney aspect of this. 

@Shafi Noss-Great points, especially knowing that extensions are common and the importance the relationship can factor into this.

@Matthew Paul-I think your advice to get security is the best way to move forward. Another reason for an attorney. And like you said, the longer it goes........I feel the same way.