Payment For Property At Auction
When paying for a property with a cashier's check at a foreclosure auction, is it customary to have the check made out in advance in the name of the trustee who is handling the sale; or, made out in my name and endorse the cashier's check over to the trustee at the sale?
I bought a house at a HUD auction last year and made the check out to:
HUD or 'noel'
so that it could be endorsed by either party in the event that I did not win the auction. You could contact the trustee or party holding the auction and ask for their guidlines.
Good luck,
noel
[addsig]
Call the trustee handling the sale. He/She will know for sure.
I have always had it made out to myself and then "pay to the order of the auction company" at the time of sale which seems to work
Generally it is best to have it made out to yourself so you can endorse it and re-deposit it if you do not prevail at the auction. If you do, you can then endorse it payable to the trustee.
As stated, you better ask. Some trustees insist on the check being made out to them and them only. If unused, you can return it to the bank for a refund. Of course, you can always bring cash...
Sendout,
Your first step is to find out the terms of the sale from the trustee.
In most areas the trustee handling the foreclosure sale will only provide the terms of the sale the day before or the day of the sale.
Some will list terms on their web site.
As for what is customary some what it paid to the trustee, some want it paid to yourself, some want it paid to the trust, some want it paid to a title company and some want it paid to a company