If your client's contract is with the the owner being foreclosed on, the contract is invalid in lieu of the sale as the current owner no longer has a right to the property once the sale begins.
Therefore, your client will be in the same position as any other bidder there. If the bidding begins at $3.15m and someone bids that amount or more, then he will have to offer more to compete. If no one bids that much, the lender will likely open the floor for a bid of a lesser amount.
Please let me know if you have any additional questions.
So long as he has approved financing up to a certain amount, and has a letter from the bank stating just that, he can get them a check by the end of the work day.
He doesn't have to deliver them a check the instant the bidding is closed.
In all of the areas I practice, that's the way these sales are conducted because no one knows the exact amount the sale will end on. Also, it is possible that your client won't win the auction - if that happens, you're left holding a handful of checks that aren't any good. This is a sloppy way of doing business and makes no sense.
If you have a letter from your client's bank that indicates he is covered up to $XXXXXX.00, the trustee will accept it and allow your client time to recover and tender a cashier's check to it within a reasonable time.
Another altertative is that your client's bank can issue him a blank check with a cap equal to the amount it is willing to loan him. If they'll do this, he can write them a check for whatever amount is bid. This will work too.
I've foreclosed on thousands of homes for banks as the trustee, and I've always done them one of these two ways.
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