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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31733
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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My client will be trying to buy a house at a trustee sale.

Resolved Question:

My client will be trying to buy a house at a trustee sale. I have been told he had to bring a cashiers check for the amount of the opening bid,plus one dollar. And another for the largest amount he wishes to bid on the property. My question is that the opening bid is more than my clients wishes to pay. WaMu has a 3,158,000 first,Countrywide a 487,000 second. My buyer already has a contract on the property 4,2,500000. He may go to 2.9. When they start at 3,150.000 what should we do?
Submitted: 9 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 9 years ago.

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.

Roger and other Bankruptcy Law Specialists are ready to help you
Customer: replied 9 years ago.
Reply to Adam Kirk's Post: I know that. My question is how many checks would u recommend my clients gets,in different denominations.If he doesn't have the exact amount of the final neqotation,what happens then?
Expert:  Roger replied 9 years ago.

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.

Customer: replied 9 years ago.
Reply to Adam Kirk's Post: Sorry,
U r the first person that has told me that. So I will not be accepting. however if I find out u were right,then I would accept.Can u tell me to do that?
Expert:  Roger replied 9 years ago.

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.