I'm looking for some insight to auctions that have been canceled / postposed b/c the homeowner has cited that the bank does not have the legal right to foreclose b/c they don't have a legal title as a result of mortgages being bundled and sold off.

What are your feelings/experience with this? I know some homeowners are hoping to get the banks off their backs completely while some just want to use it to leverage their bank into renegotiating their mortgage. Does it work?

NO - never heard of anyone silly enough to try that one.

What you are describing is the secondary mortgage market.

There are plenty of programs to help rescue you, er I mean people, that this shouldn't be a factor.

Good Luck Deal

btw - it is customary for you to first post your introduction and let us know a little about your ties to real estate.

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Don Price REALTOR®
Advanced Real Estate Services & Staging
Pinehurst, North Carolina

Pinehurst Real Estate | REO-BPO-Brokers | REO-BPO-Brokers Blog

Oops! I'm not a real estate investor or someone who is facing foreclosure. I'm trying to find a home for my family. With the market continuing to decline, it seems the best deals are in the auction / REO market. One particular house I am interested went up for auction, but was cancelled at the last minute. The house had been on the market and I twice made offers to buy it when I heard it was in preforeclosure. Apparently, the homeowner was able to get an injunction agaist the bank to prove they owned the mortgage. The injunction was granted and now the bank can't do anything for 30 days.

I'd really like to buy the house, but I'm afraid to pass up others while waiting for this one.

Here's a link that better describes what I am talking about:
http://www.realestateradiousa.com/bl...t-of-mortgage/