Anyone with experience in short sales and REO's know the bank requires proof in writing that the buyer has the necessary funds for the purchase of the property. If the buyer is paying cash I have always advised them to obtain a letter from their bank stating they have the necessary funds for the transaction.
In a recent short sale where I had the listing, the buyer submitted a letter from his bank signed by the Vice President of Banking which included his contact number and email.
The negotiator with the bank would not accept the letter as proof of funds and asked for a copy of the buyer's account statment. His reason was the wording "access to cash currently on deposit". He said the buyer could move these funds from this account into another account at any time. I responded by saying the buyer could still move funds from an account after he gets a copy of the bank statement. He simply said "A bank statement would be different".
I understand an actual copy of the bank statement is a harder proof of funds, but if there is any issue, the negotiator could call the Vice President and get clarification. If the letter was truly a fraud then what would be the end game? Not closing? I don't understand why banks are making the process more difficult than it has to be. In this case, it ended up being an acceptable offer and went to closing.
**********************************
like buttons
Comments
Good questions Karen. I'm sure it will be different depending on the bank... and even on the particular account manager you speak with.
Short Sales are constantly in flux. Certifications should include monthly follow up training to be sure all agents are on the same page with what's new.
Do they think the buyer is just doing this because he has nothing better to do? I understand why they want the seller's bank statements but there should be a slightly lower standard for the buyer. What if the buyer just put the funds into his bank account . . . do we have to wait 3 weeks for the end of the statement period to produce a statement? They will not accept a bank summary and I guess now they will not accept a letter from the bank president.
With BofA REO we are not allowed to upload anything with non public information. We have to sign a document stating that we verified the funds. Bank of America does not trust its employees to not steal information I guess