Hi Gang, I have an investor buyer on my listing who is using a transactional funding company for their financing. The proof of funds statement does not have the buyer's name on it, and the funding company will not put their name on it. So, BOA will not accept this POF since there is no buyer name on it. The buyer's agent is trying to see what else the transactional funding company can provide, but they are not being very helpful. Anyone have suggestions of how to get around this?
Thanks!
Tags:
Hi Scott -
No surprise by any of the Short Sale Lenders. I've seen a lot of this lately and the lenders typically will not budge. They want to see either a true Loan Approval in the actual buyer's name (not a corporation name - although they might accept an LLC). Or they want a bank statement in the buyer's name with "Liquid Funds". I beleive they are trying to avoid absence of arm's length, and quick flips where the bank could have gotten a higher price...... Are there any other standard / non-investor buyers for this property?
Best of luck,
Thom Colby
Broker / Negotiator
Newport Beach CA
Have to agree with my colleagues. There is no reason why the transaction lender would not put the buyer's name on the approval letter.
Sounds very fishy. How thoroughly have you researched your buyer?
Steele
I'm an investor also (and Realtor) and I smelling fish. <smile>
There's not really a sound, logical reason for the finance company not to identify the buyer on the letter.
fish-fish-fishy...
Buyer needs to look for another TF or you may want to move on from this guy. Banks are very reasonable with a proven TF and any POF letter must contain the amount lendable, name and contact info of the TF (obviously to verify) and the name and contact info of the borrower. This is why BofA put a stop to this.
Scott, if the minimum required info is not available to the TF, the letter is simply not issued. Info needed to make a determination on funding would be: 1) Borrower did not give enough personal information required to make the TF feel comfortable protecting their funds through out the transaction.2) On determination of the final sale price, analysis of the property value using projected ARV falls below minimum targets in relation to the monies lent.
Lastly, beware of the fraudulent POF letter. Anyone can print the letter, and banks do confirm validity. Scott, this situation just feels like the last reason stated above...my opinion.
Has anyone dealt with this issue recently?
© 2024 Created by Brett Goldsmith. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.