How Do You Pay At Calif Foreclosure Sale?

CarolTheGreat profile photo

Can you help me with some details?
When you arrive you show the auctioneer some evidence of your capacity to pay. Is it a cashiers check? Made out to whom?

Where I live a typical inexpensive house still costs $300k or so. It just isn't realistic to have that amount of cash lying around. Do you get a line of credit based on your assets and then have the bank write the cashiers check against the line. Provided you dont use the check and take it back, can you merely pay them a fee for the transaction and not go through with borrowing and then repaying the amount of the check?

How does this work?

I asked the auctioneer if it was ok if I brought a check that was too big and he said no problem, you get a cashiers check for the balance.

Any help would be appreciated.

Comments(3)

  • sanjosee28th October, 2003

    Cashiers checks should be made out to you. Use multiple check denominations to minimize overage (it takes a while to get the refund of the overage) . A credit line is a excellent tool to use for trustee sales.

  • Lufos29th October, 2003

    Dear Carol the Great, Katherine sends her regards.

    In days gone by I utilized Bank of America and I maintained three accounts. One a checking account, company, Trust Account company and savings account for capital accrual. I would go into the bank and they would draw me checks in specified amounts to total what I intended to top bid. I would attend the sale and if I used checks I would bring back to the bank the unused checks and adjust a 90 day loan for the funds utilized.

    When the 40 thieves came to an end, caused by Mr. Zimmerman's inability to honor his handshake, I went to Union Bank and Trust and I kept at least three maximum Certificates of Deposit with them. Once again I would go in pick up a bunch of checks. Cashiers checks made out to me personaly. I would attend the sale and at the end, return once more to the bank. Execute a 90 day note for whatever funds I had utilized and the bank would cover by possession of the Cashiers Checks. The deal as you can see is not to have the checks honored unless you use them.

    The present time method is merely to execute an equity loan arrangement and then draw against it. The bank issues the Cashers Check and whatever portion you use, you cover by the execution of a note and trust deed for an equity loan. Nice and simple if you have an appraisal done by the banks qualified appraiser that confirms the equity in the property.

    At sale, as you qualify, be sure not to expose your qualification amount and watch the Trustee that he does not signal other bidders of your amount.

    When you bid do not look up or down or count checks or have anything in your hand. Merely make your bid in an even non inflected voice and do not change it. Set your pace and stay with it. Somewhat similar to pocker. Watch those who attempt to surround you they are supportive to some other bidder, they may try to throw you off stride etc. etc.

    However, I suggest that if you are bidding foreclosure sales, you might consider other methods. For example buy the property from the owner prior to the sale. Merely bring current the mortgage or trust deed and then go from there. Probably hold down the cash required.

    A plus is to establish a relationship, platonic of course with the Trustee persons who conduct the sales. They in reponse to your question will keep you adviced of requests from other bidders prior to sale. This gives you a chance to make that last minute save and buy the property from the owner.

    There are of course many others, you might sit down and review your activities with some of the highly qualified persons here present at TCI.

    My best to the pier, do they still deliver items underwater off the shore late at night? Do they still use those long poles with hooks to retrieve and then row ashore? Days of my youth.

    Cheers, Lucius

  • CarolTheGreat29th October, 2003

    Lucius
    You certainly are charming
    Midst the combat here it's nice to read your supportive non combative pleasant thoughtful knowledgeful messages.
    Thanks for the info. And thanks to the others also.
    Carol

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