After reviewing the forum it looks like some people hold onto their cashier checks for a few months. Question…while waiting for the right property is this money removed from their bank accounts because they are guaranteed funds? When getting the cashiers checks at the bank would you get them issued to anyone in particular for security reasons? (worried about them being stolen).
It’s almost always best to have cashiers checks made payable to yourself. This give you much more flexibility. It’s easy to endorse your checks over to the trustee upon making the final/successful bid.
A well-trained auctioneer will look to see that your checks match the ID you show when qualifying. Some auctioneers (following their corporate rules and/or trustee protocols) will ask that you show a letter of authorization if your checks are not made payable to either yourself or to the trustee for the property you’re bidding on. Why a letter of authorization? If they don’t know you, they want to make sure that you didn’t just “find” the checks and that you indeed have authorization to bid for another party/entity.
Yes, once you have the cashier’s checks in hand, your account is debited for the funds. The bank then backs the payment.
These are not travelers checks … so If your checks are lost or stolen … you’d better move quickly to alert the bank wherefrom the checks were drawn. Hopefully you saved the perforated portion of the checks, as that will have the check details. You can (apparently?) stop payment on a cashiers check, but I’ve never done it … someone else may be able to tell you more about that.
As I recall, multiple different banks have told me that it would take 90 days (!) to get back funds from a stopped cashier’s check (although I’ve never actually had to stop a cashier’s check).