Monday, December 13, 2010

Postponed (No Reason)

I've become a more avid follower of Trustee Sale action, for a couple of reasons. First, because I am looking to secure a transactional financing source, and second because I have a particular client that wants to buy a particular property, that has been scheduled for auction for the last 3 months or so.

What I've come across is a seemingly never-ending sequence of postponements, the timing and predictability of which are uncanny, and usually a reason is stated such as "Beneficiary's Request", "Bankruptcy", etc.

For the first time this morning, I literally saw "No Reason" given as the reason for the postponement. While I thought this as honest as this process had ever been, it made me curious. Why would a lender/servicer delay a FC for "no reason"? I know that a lot of things are counter-intuitive, but usually they are at least in the best interest of the institution holding the bag.

I'm not usually at a loss for where to take pro-active steps on the disposition of a property. When you have an agreed upon short sale where the lender out of nowhere decides to increase the approval price, that generally means they want to foreclose. Ok, fine, we'll try to buy it either at Trustee Sale or as an REO. However, when the LENDER then uses a number of stall tactics to delay the FC, I'm really confused.

Anyone out there experience something similar or have any advice on where to go here?

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