Yes.....plenty of times.  Sometimes there are reasons they don't want the property.  You should find out why.   A good example is if they know it has environmental issues or potential environmental issues, like an old dry cleaner.  They don't want the EPA liability.  Maybe brownfield sites like previous lead smelters or other reasons the property is contaminated.

Sometimes we don't always know why they won't take it, but I think often they have good reason.

 All the time. As Bruce mentioned, many reasons and sometimes its more of a simple fact they have yet to get around to it as its not something they do often and may not have the process down very well.