I deposited a third party check that was endorsed to me into my account. After three months, it came back as a collection on my bank account and put into overdraft. What do I do? Am I in trouble?
When checks come back that late, it's usually because of a problem with the endorsement(s). Was there a claim from the paying bank that the endorsement of the third party was fraudulent or otherwise a problem? That would make you liable for the amount of the check, because you also endorsed it and received funds from it.
Talk to your banker to establish why it was returned. If there was a problem with the endorsement, you need to find a way to put funds back in your account to cure your overdraft. If the paying bank sent back the check for another reason that put the return after that bank's return deadline, your bank should refuse the charge-back, and when it determines that the paying bank hasn't disputed the late return claim, refund your money.
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When checks come back that late, it's usually because of a problem with the endorsement(s). Was there a claim from the paying bank that the endorsement of the third party was fraudulent or otherwise a problem? That would make you liable for the amount of the check, because you also endorsed it and received funds from it.