In California, before a home can go to foreclosure sale (aka Trustee Sale, Auction, Foreclosure Auction) the bank must first must attempt to contact the home owner and work things out (30 days), then file a Notice of Default (90 days), then file a Notice of Trustee Sale (and publish it for at least 3 weeks). Once they have done all this, they are in a position to sell the home at the auction.
If the bank cancels the foreclosure sale, they must start back at square one. Instead of canceling the foreclosure sale, the bank postpones it. Why would they postpone? A few reasons are (1) the homeowner (HO) file bankruptcy; (2) the HO is working on a loan modification; (3) the HO is in a forebearance agreement; (4) the HO is negotiating a short sale.
Usually, when you see a property that has had its auction postponed over a year, the HO has filed for bankruptcy and is working through their re-organization plan. If the HO defaults on that plan (or any of the direct bank negotiationed workouts noted above), the bank can immediately schedule the auction, without having to go through the 5 month process of re-filing for foreclosure. This cuts their losses. If you want to the know the specific status of the home you are referencing, send me the address and I will get back to you. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty