Certified Checks to Foreclusure Auction?

Question

My bank won't create blank certified checks..

Do you guys bring bank/certified checks in several denominations?  I don't want to carry thousands in cash.

Thanks.

Account Closed · Answer

if you get checks in powers of 2 ($1k, 2k, 4k, 8k, 16k, 32k, 64k ...) you will have the exact amount within $1k.  For example, if the final bid is $19k, you give them 16k+2k+1k.  it works out mathematically that with the right combination of checks you can always get within $1k of the bid.  this is to avoid giving them way too much and waiting for change.

Craig J. · Answer

I understand that I need to bring various Cashier's Checks to complete a foreclosure auction. My problem is if say I plan to attend an auction with 15 properties of which I may have interest in 3-4. My bank will not issue blank Cashier's checks and insist on a payee on each. In this scenario I do not know which payee may accept my bid so I am back to square one. Someone here mentioned getting cashier's checks made out to oneself and then endorsing them and signing them over to new payee. My bank said this is a 3rd payment that may not be accepted by many banks. There has to be  away....

Jake Kucheck · Answer

Cashiers checks in all kinds of denominations, as low as $500 (or whatever you are comfortable not getting back for 2 weeks).  Have the checks made out to yourself (or whatever entity name the account is tied to) and have your bidder endorse them to the trustee upon a successful purchase.  That way, if someone robs your bidder, the worst they can do is deposit them back into your account.

Chris Calabrese · Answer

You should have until close of business to pay up, so you can run to the bank after winning an auction.

Oscar Beteta · Answer

Excellent information!  Thank you guys!

Kyle Meyers · Answer

Get a new bank. I have not had need for these checks yet, but just confirmed with Ally bank that they provide them with no charge. I don't do foreclosures, but I buy at tax lien auctions and they vary by county when you have to pay, from paying before you bid, to having a few days to pay off your balance.

Jon Holdman · Answer

Also not universally true here, Chris Calabrese.  Some counties literally stop the auction when each bid is won and require the money right then and there.  Others send you to the back of the room to pay.  Others give you a few hours.

Yep, find a different bank.  You will want to bring a variety of checks.   If you won't go above $80K, bring ones for $40K, $20K, $10K, $5K, $2500, $1250 and two for $625. Then you hand over the combination that gets you closest.  Eventually, you will get a check for the over payment.  Take the unused ones back to the bank.

Steve Babiak · Answer

The bank won't create an official / cashier's / certified check that is blank because the funds are withdrawn from the account when the check is created - so the dollar amount must be known then and there.  They also require the payee to be set when the check is created (but I don't really know why that is).

The denominations you bring will vary depending on number of properties you are pursuing and the maximum dollar amount you set in advance for your bids.  You are unlikely to over-bid if you don't have excess funds with you ...

Also, sometimes you will have to pay in full when the bidding concludes, and sometimes just a specific deposit is needed at the conclusion of the bidding.   Know ahead of time what the requirements are so that you bring appropriate funds with you.  Bringing cash is not always so bad when the auction only requires a deposit up-front.

As to paying for these checks, this will vary by bank and the policies the bank has.  I entered into "relationship banking" at one bank where multiple accounts all get put under the relationship; that came with several benefits, among those was free official checks.

Ann Bellamy · Answer

I pay at one of my banks for cashier's checks, but not at another.  It's a function of the $ of banking relationship.

Ann Bellamy · Answer

Chris Calabrese, that's not universal.  In NH, you have to show the cashier's check when you register to bid, before they will allow you to bid.  Of course, we have auctions at each property, not on the steps, so we're strange up here anyway.  :-)

Certified Checks to Foreclusure Auction?

Most Popular Reply