Foreclosure in San Diego>Question Details

Neophyte, Other/Just Looking in 92108

Why was trustee sale postponed?

Asked by Neophyte, 92108 Sat Nov 8, 2008

I recently attended a trustee sale to see how things worked. First, the auctioneer read off a long list of cancellations, followed by a long list of postponements. Are these loan reinstatements and partial loan reinstatements, respectively?

If it is a partial loan reinstatement, will the trustee's sale be postponed for a month each time a payment is made (or held if a payment is missed)?

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Brian Head’s answer
If you've never been to an auction its worth it to go to see at least once or twice. You see alot of the same people doing the bidding on several properties and it can get to be quite a frenzy, especially lately, more homes are being auctioned off then ever before since the 1st of the year. I had a conversation with one gentleman that I've seen at several auctions and he bids for an asset manager of a major hedge fund. In any given day, he'll bid on 20-30 properties. He told me he gets paid based on how many homes he can buy in a day, and attends at least 2 and sometimes 3 or more different auctions sites in one day. He would not tell me the name of the hedge fund or the money behind him but he's been at it now for a couple of years so he must be doing very well for his employer.
If there are postponements nowadays it's primarily because the homeowner has filed documents to aquire protection so the Trustee cannot foreclose.
An effective way to avoid foreclosure is to have an Attorney bring Litigation against the investor of the loan not the servicer. If your trying to negotiate for a Modified loan and your talking to the servicer....it's a real long shot that you'll get the modification. When the investor gets brought into the picture it a whole different game.

A payment to the bank won't stop the foreclosure unless it's an amount that can settle the unpaid balance of the loan. Typically, once a property goes into default the lender will no longer take payments.
0 votes Thank Flag Link Thu Mar 29, 2012
The trustee has certain discretion to postpone sales even when no one asks him to. But more frequently, the postponement comes from the foreclosing beneficiary, usually the lenders for a myriad of reasons - bankruptcy, temporary restraining order, or lender's desire to give borrowers more time to do something to avoid a foreclosure.

There's no rule on how long the postponement can be or the number of postponements (but if the property is not sold within 365 days the notice of sale may have to be republished and re-served)
0 votes Thank Flag Link Sun Apr 17, 2011
The cancellations and postponements are likely due to bankruptcy filings. You can call the trustee to find out the reason for the cancellation or postponement.
0 votes Thank Flag Link Thu Apr 14, 2011
How did you like standing on the court house steps? Do you think it was worth your time and effort? Why wouldnt you ask a professional on how it works then trotting down to the court house yourself.

An agent could have told you exactly what would, could and should take place..
0 votes Thank Flag Link Sat Dec 13, 2008
A trustee sale is a foreclosure sale and a foreclosure sale is never an estate sale.
(at least not in the context of a trustee sale on the West coast, as in a foreclosure auction
on the court house steps - every state is different and has different laws)
Not really sure what you meant by that last past, However the first part was right on!
MERS must be an East coast thing, West coast we have fidelity.
Web Reference: http://www.rescg.com
0 votes Thank Flag Link Wed Nov 12, 2008
Most banks are now using MERS Mortgae Information Electronic Services as trustee to handle all aspects of the foreclosure. As trustee they are notified if the home owner arranged a loan modification, entered into forebearance or made a payment. Usually one payment alone will not cancel the foreclosure sale, it is a combination of payment and an agreement. Yes people do break the agreements and some do come back again for forclosure sale. So when you see trustee it isnt always an estate sale, it is very common to have a trustee in a foreclosure sale
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Nov 12, 2008
It depends, it is really based on the people involved. If you have a home owner that is trying to work things out with the bank via the ways already mention, forbearance agreement or via a bankruptcy then the bank will postpone an auction. (the auctioneer will tell you the general reason ie: due to mutual agreement or bankruptcy. Outside of that he does not know anything else)
You need to be careful buying at the auction - most of the time the home owner will not let you into home before the auction date nor do they have any oblagation to let you in. (so you have no idea what you are getting) and you are not getting a home with clean title. There can be other trust deeds or liens against the property. My understanding is that junior liens are wiped out at the auction along with mechanics liens, how ever senior liens and property taxes ALWAYS have to get paid, so buyer beware!
It is fun going to the trust deed sale and seeing how it works but you need to do your home work first before you buy anything!

And then unless you are just bug nuts in love with the house you tend to get a better deal working with a buyers agent that knows what they are doing and can find you a deal either via a short sale or a motivated home owner. Also keep in mind you do not pay your buyers agent, they are paid by the listing agent broker at the close of escrow. No cost to you!
Web Reference: http://www.rescg.com
0 votes Thank Flag Link Wed Nov 12, 2008
In my experience, more are postponed or cancelled than sold. It's a tidal wave of postponed moving forward. 2 main reasons: If the bank is working on a short sale they may choose to postpone the sale. Or, the owner is working on a loan modification. Very exciting process usually. The timeframe is not set in stone as far a the month delay. If you are hoping for a particular house it can be long and frustrating having to keep going back. That's why investors have their eye on about a dozen at a time. Interesting to see the buyers pull out the cashier's checks to pay for the houses they bought. A few companies will buy them for you and then finance for you for a fee but you're losing some of the benefit of buying cheap on the courthouse steps. It's a buyer beware process more than at any other time. Hope that helps. Good luck!

Diane Conaway, RE/MAX United, (760) 749-2888
0 votes Thank Flag Link Sat Nov 8, 2008
Who was the trustee representing? Often, family members have doubts about letting go of certain items.
Or, if it was a bundle of properties being offered by a bank, they could have sold the paper to another bank.
More information is needed. next time you go to a sale, try asking one of the auctioneers a few questions. They are usually happy to explain the process to you.
Web Reference: http://www.mariatmorton.com
0 votes Thank Flag Link Sat Nov 8, 2008
While that depends on the individual lender, I'd think it's very unusual to cancel or postpone a trustee's sale based on whether or not this month's payment is made,
0 votes Thank Flag Link Sat Nov 8, 2008
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