Posted by pat/WA on 6/20/12 9:36pm
Msg #424166

cashiers check

What is the procedure to follow when a cashiers check is lost?

Reply by OR on 6/20/12 10:15pm
Msg #424168

I dont worry about it. Because I have stapled it to the signature page of the HUD and made a copy of it for the borrowers as my recipt. Maybe the borrowers have to have it replaced.

Reply by Jack/AL on 6/20/12 10:15pm
Msg #424169

Panic, whimper, cuss, fuss, search, search, search,,,,,,,,,, n/m

Reply by CJ on 6/20/12 11:51pm
Msg #424177

I think the bank can put a stop payment on it.

I always fold the check over the rubber band and paper-clip it to the rubber band. I have never lost one yet. Getting the whole thing in a sealed overnight envelope ASAP helps too. I don't know how to photo copy it for the borrowers, and for me, whenever I bring a stapler, they just get all banged up and fall apart.

Reply by pat/WA on 6/21/12 12:19am
Msg #424185

cashiers check

I didn't lose it. I immediately sealed it in a UPS envelope and shipped it out. Now the title company is saying they didn't receive it.

Reply by Scriba/NM on 6/21/12 12:43am
Msg #424186

Congratulations !!!

I see no one has actually really answered your question. This is so normal.

Okay, when you receive the cashier's check at the signing, you staple it to the HUD-1 Settlement Statement.
(The excuse about not carrying a stapler is moronic - my stapler has been with me for 5 years - it's a SwingLine, MODEL 99PL, and you can stand on it and not bother it).

Secondly, take the DUPLICATE of the Cashier's Check and advise the borrower(s) to keep it safely with their loan docs as there could be a loss by someone handling the package (to you and I that's some nincompoop at the title company).

Thirdly, write the CC check number onto your Confirmation Sheet so it will always be with you.

Do not meekly stand by and get whipped around by someone calling and telling you that the particular check is lost. Ask immediately for a SUPERVISOR. When he, she or it comes on the line, ask the Supervisor if there are "staple holes" on lthe left hand side of the HUD-1. They have to say yes (unless someone has done a dandy job of covering it up). Advise them you are extremely careful about NOT losing any checks of any kind and that someone HAD to have unstapled it.

You at this point, tell the Supervisor (he/she/it) needs to call the borrowers and advise them that they will need to take the duplicate to the bank and have that check cancelled AND reissued. Also remind them to email or fax to the borrowers, a return shipping bill to get the replacement check sent back, unless the bank wants to reimburse them for a wire transfer. Title will have to provide W/T instructions.

It's simple, but it takes time out of one's busy day.

Reply by CJ on 6/21/12 12:03pm
Msg #424217

Perfect! This is great! :) n/m

Reply by CopperheadVA on 6/21/12 12:54pm
Msg #424230

Re: Congratulations !!!

Cancelling or stopping payment on a missing cashiers check is not a simple matter. If a replacement check is needed (it would be in this case since the purchase or refinance transaction will not be completed without those funds) then it's my understanding that a bond must be issued in case the original check is also presented for payment.

From the Comptroller of the Currency Administrator of National Banks website:

QUESTION:
I purchased a cashier's check from the bank and then lost it. I want to purchase a replacement, but the bank says I first have to purchase an indemnity bond. What is this?

ANSWER:
If you lose a cashier's check, the bank will require that you obtain an indemnity bond for the amount of the lost check before it will issue you a new one. This ensures that you—not the bank—will be liable for the second check. Otherwise, the bank could be liable for both checks.

Indemnity bonds can be purchased through several insurance companies; however, they are often difficult to obtain. Contact your insurance broker for help. Be forewarned that even after you present an indemnity bond, a bank may require you to wait 30–90 days before it will issue a replacement check.

If you lose a cashier's check given to you by someone else, you can ask that person to buy you another check. If they refuse, you could approach the bank with an indemnity bond.


http://www.helpwithmybank.gov/get-answers/bank-accounts/checks-cashiers-checks/faq-bank-accounts-cashiers-checks-01.html