Sounds to me like there is an "investor" involved who may be attempting to get control of the property in order to bring it current.

Thank you for the recommendations @Amy Davidson and Account Closed  and I have attempted to assist Pavel.

I am attempting to do my first wholesale transaction.

The good ones without the experience innately know when they should offer/attempt to bring the parties together (if even just by phone).  

This isn't a shameless plug for my site, I just don't want to attempt to explain the deal as some of the finer points are sure to have slipped from my mental grasp by now.

Credit will need to be 640+ as well for most lenders after that.The issue is that she will miss the balloon payment putting her in default of a mortgage, I know you don't report but she has to state that on any application once you get to that date, so extending may be the best option, keeps the black mark off her application/credit and may improve credit sooner.If you make an attempt to extend the original terms to an amortized loan you'll be in much better favor under any violation, shows you tried.

The field is called reputation management, where a company will come in and attempt to drive bad press off at least page 1 of Google's search results.

Thank you for the reply - I have sent out 250 yellow letters two weeks back and almost 50 of them came back to me as "Return to Sender and Attempted not Known" - Is this normal that I should expect almost 20% postal mails as not delivered.Can you please recommend the website how I can do Address verification? 

Is there any strategy for even attempting to make offers to the REO bank, in effect bypassing the agency that has no interest in dealing with us at all?

I have said that eventually deals will surface as a buyer-borrower attempts to seek financing under a contract or other possible events occur, now that period of clear sailing may have a hurricane blowing in.