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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: How many postponments? Posted by Ward-CA- on July 21, 2001 at 8:48 AM In Reply to: How many postponments? posted by Jason on July 20, 2001 at 12:46 AM : I have been following some foreclosure sales and my questions are: : Why do they wait until the last minute to postpone a sale? : Does a bankruptcy get the sale postponed every 30 days for the next 3/5 years? : How many times can they postpone for mutual agreement and why don't all the trustee's state the reason? : So far all the sales I have chased get postponed and then they go to bankruptcy is there any method to help find a pattern? : My new job is chasing postponements!! =•=•=•=•=•=•=•=•=•=•=•=•= Jason, it might seem like the Trustee (processor of a foreclosure action in non-judicial states) is waiting until the last minute to announce a postponement, but they’re ever optimistic that at the last minute the beneficiary (lender) will give them the green light to go ahead with the sale. Conducting a foreclosure while the owner is in a bankruptcy action is really a “catch as catch can” proposition. Conceivably the process could linger on for the full 5 years possible under a Chapter 13 filing, but most delinquent owners (trustors) can’t be consistently on time with their modified monthly payments for that long. In a predictable pattern, they will slide on their mortgage payments while in bankruptcy. It’s just the thing the beneficiary patiently waits for. They will jump on the opportunity to exercise their rights under the mutually executed stipulation agreement (stip) with the trustor and get their long sought “relief from the automatic stay” and proceed to sale. In some non-judicial, trustee’s sale jurisdictions, such as California’s, a foreclosure sale (trustee’s sale) is frequently postponed. In CA the trustee is only allowed 3 postponements before they have to re-record the Notice of Trustee’s Sale and reset the sale date, time and location. However, not all postponements are chargeable to the trustee, and thus are not counted as one of the three allowed the trustee. There are about 4 different reasons for a postponement of a foreclosure (trustee’s) sale. And they are: 1. Bankruptcy. Any creditor action against a debtor is automatically “stopped” when the debtor’s bankruptcy petition is filed in federal bankruptcy court. The protection afforded all petitioners in a bankruptcy action can only be lifted upon a creditor’s successful pleading for a “relief from the automatic stay” with the Court, to be selectively allowed to continue with their ongoing creditor action. (NOT chargeable to the trustee’s three allowed postponements.) 2. Mutual Agreement. Any agreement between the trustor and beneficiary to temporarily suspend the progress of an ongoing foreclosure is called a “mutual agreement”. Any forbearance agreement would come under this category of postponement. (NOT chargeable to the trustee’s three allowed postponements.) 3. Operation of Law. Generally covers delays caused by the trustor’s filing of a lawsuit against the trustee or beneficiary, seeking a temporary restraining order (TRO) to postpone the sale while a court can hear the trustor’s argument that the foreclosure is invalid. (NOT chargeable to the trustee’s three allowed postponements.) 4. Beneficiary’s Request. An amorphous catch all that’s on a par with “mutual agreement”. You can assume that knowing the reason for a postponement, other than the “bankruptcy” one, doesn’t amount to a tinker’s damn. So I wouldn’t sweat the reason “why”. Just be thankful for them because they are the single most important element in the foreclosure process that’s so successful in discouraging your competition and ultimately dissuading them from continuing to show up and compete with you. By the way Jason, thanks for the new job description. I usually tell inquirers that I recycle distressed property. Now I can vary that with “postponement chaser”. Good luck, my friend. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I have been following some foreclosure sales and my questions are: : : Why do they wait until the last minute to postpone a sale? : : Does a bankruptcy get the sale postponed every 30 days for the next 3/5 years? : : How many times can they postpone for mutual agreement and why don't all the trustee's state the reason? : : So far all the sales I have chased get postponed and then they go to bankruptcy is there any method to help find a pattern? : : My new job is chasing postponements!! : =•=•=•=•=•=•=•=•=•=•=•=•= : Jason, it might seem like the Trustee (processor of a foreclosure action in non-judicial states) is waiting until the last minute to announce a postponement, but they’re ever optimistic that at the last minute the beneficiary (lender) will give them the green light to go ahead with the sale. : Conducting a foreclosure while the owner is in a bankruptcy action is really a “catch as catch can” proposition. Conceivably the process could linger on for the full 5 years possible under a Chapter 13 filing, but most delinquent owners (trustors) can’t be consistently on time with their modified monthly payments for that long. In a predictable pattern, they will slide on their mortgage payments while in bankruptcy. It’s just the thing the beneficiary patiently waits for. They will jump on the opportunity to exercise their rights under the mutually executed stipulation agreement (stip) with the trustor and get their long sought “relief from the automatic stay” and proceed to sale. : In some non-judicial, trustee’s sale jurisdictions, such as California’s, a foreclosure sale (trustee’s sale) is frequently postponed. In CA the trustee is only allowed 3 postponements before they have to re-record the Notice of Trustee’s Sale and reset the sale date, time and location. : However, not all postponements are chargeable to the trustee, and thus are not counted as one of the three allowed the trustee. : There are about 4 different reasons for a postponement of a foreclosure (trustee’s) sale. And they are: : 1. Bankruptcy. Any creditor action against a debtor is automatically “stopped” when the debtor’s bankruptcy petition is filed in federal bankruptcy court. The protection afforded all petitioners in a bankruptcy action can only be lifted upon a creditor’s successful pleading for a “relief from the automatic stay” with the Court, to be selectively allowed to continue with their ongoing creditor action. (NOT chargeable to the trustee’s three allowed postponements.) : 2. Mutual Agreement. Any agreement between the trustor and beneficiary to temporarily suspend the progress of an ongoing foreclosure is called a “mutual agreement”. Any forbearance agreement would come under this category of postponement. (NOT chargeable to the trustee’s three allowed postponements.) : 3. Operation of Law. Generally covers delays caused by the trustor’s filing of a lawsuit against the trustee or beneficiary, seeking a temporary restraining order (TRO) to postpone the sale while a court can hear the trustor’s argument that the foreclosure is invalid. (NOT chargeable to the trustee’s three allowed postponements.) : 4. Beneficiary’s Request. An amorphous catch all that’s on a par with “mutual agreement”. : You can assume that knowing the reason for a postponement, other than the “bankruptcy” one, doesn’t amount to a tinker’s damn. So I wouldn’t sweat the reason “why”. Just be thankful for them because they are the single most important element in the foreclosure process that’s so successful in discouraging your competition and ultimately dissuading them from continuing to show up and compete with you. : By the way Jason, thanks for the new job description. I usually tell inquirers that I recycle distressed property. Now I can vary that with “postponement chaser”. : : Good luck, my friend. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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