Postponed (No Reason)

[Jake Kucheck]

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 is 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.

Would love to hear if there are similar experiences out there. Also, I posted this in "Short Sales" because we had originally agreed to a SS on this property, but then the 1st TD lender changed their approval to a number higher than what my buyer (or any buyer) wanted to pay, so now we are in SS purgatory waiting for the FC... if anyone has any advice or pro-active steps to take in that situation, I'm all ears.

[Eric M.]

Chris, Is right, the standard needed for a delay is very low.
Borrower might have asked for a delay, requested a loan mod, an attorney could be out of town, the trustee might not have gotten the right paperwork in time with the opening bid.

Heck, it could be because of the holiday. In my area, the rate of postponment triples in the days before major holidays, especially Christmas.
It is bad PR to boot someone out at this time of year.
There are just tons of reasons for a delay.