[quote=HLS]I don’t think that you are being told the facts.
This doesn’t make sense.
If it is not a foreclosure, and the seller doesn’t have a crazy loan, then the seller doesn’t have a ‘bank’.
They have a LOAN SERVICER, (which may happen to be a bank)
I have NEVER heard of a loan servicer that will not provide a payoff statement.[/quote]
I agree in that there is probably more here than meets the eye.
However, I am less skeptical than Sheldon.
It sounds as if the owner is in distress (unable to pay) with positive equity (he owes less than the market value).
Your mention of unpaid taxes is why I say that.
In those situations, the banks sometimes (though not always) fast track it for foreclosure (even in violation of the TD or state law).
If that is the case, the bureaucratic mess on the lending end may add considerable time to the process.
Also, lots of servicers sell non-performing notes.
As an example: If chase is selling the mortgage to Wells recovery as a non-performing note at a discount, then there may be a crazy period of confusion as nobody knows who actually owns the paper or what department is in charge when you ask for a payoff.
I have seen that before.
