Avoid this costly "almost" mistake!

General Real Estate Investing
1

I was getting ready for a local commercial auction today. I’m at the bank getting the cashier’s check. Just out of random, I ask the teller how long these cashier checks last, so that I wouldn’t have to “buy” more of them with other purchases over the coming months. He told me 60 days. Then I asked him when does the money come out of my checking account for these checks so that I would be careful not to over withdraw if I still needed some money to cover the cashier checks later on. He told me that the money comes out immediately.
Oh. That I didn’t know.
Then I proceeded to ask him what to do with the cashier checks if I didn’t use them in the 60 days. He told me that I have to bring them back to the bank and they will credit it back towards my account.
At this point, I’ve pretty much put 2 and 2 together and made plans to definately keep tabs on the expiration date of these cashier checks. My initial thought was that I would just shred them after the 60 day point if I didn’t use them.
So, I ask the teller, hypothetically, if I had shredded these checks 60 days from now, I would effectively taken a loss?
Yes, the teller told me.

So, for all you out there new to cashier checks: [u]BE AWARE OF THE EXPIRATION DEADLINES if you don’t use them.

For me, I would have basically shredded $6000 if I hadn’t have asked :eyecrazy

Dean

2

Ahh, what planet have you been living on?

On a side note, I did figure out what was wrong with my computer finally!

http://www.youtube.com/watch?v=tCHKIdup5Lo&feature=related

3

Dr. White,

Have you checked into using a irrevocable letter of credit. I don’t know if they would be acceptable in an auction. Have you checked into some other banks policies concerning cashiers checks? I’d certainly look for other ways if I ran into that problem.

Good luck,
donrock

4

I see your problem, too John - you let the Fuzzy Brothers work on your computer!

Keith

5

I was scared to death of those things when I was a kid. They still haunt me sometimes after a long night of drinking.

6

At my bank, cashier’s checks are negotiable for 6 months. If the check is not made out to yourself, you have to return them to the originating bank to cancel them and have your money redeposited.