I am trying to close a short sale with OCWEN as the only lien, seller is approved for HAFA

The lender/negotiator has been asking me for buyer POF for a number of weeks and I have asked him what does he need other than the lender letter which he has had since the beginning. He always said OK thats suifficient

Yesterday I get a call from a new negotiator telling me that the HAFA was being declined and this was now a traditional short sale all because they never got the buyer POF! I asked of what the heck he was talking about and he said....there is a difference of $8352 between the letter from the lender and the offer price, we need a bank statement showing the buyer has the money! This is a first for me, though i must say I told the buyers agent be prepared they keep asking for the same thing over and over please send me something to show she has this money just in case they want proof - she refused stating the buyer is NOT the one trying to short sell and should not have to prove anything to anyone but her lender! UGH!

The good news is i have been able to convince the new negotiator that this was never communicated to me at all and I am fighting the HAFA denial and want it escalated to keep this going (DONE) and the buyers agent now realizes this is a necessary requirement to get this closed.

Has anyone else experienced having to show bank statements from the buyer - i have been doing SS for over 4 years did i miss something somewhere along the way?

They say EVERY SHORT SALE is different and I concur no two are the same!

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Ann,

       The buyer's proof of funds need to cover the whole purchase price whether it be a cash or a financed transaction. If the buyer's pre-qualification letter doesn't cover the whole purchase price than proof of the additional funds will need to be provided to cover the difference. This could be in the form of a bank statement,gift letter, and a few other options.

Hope everything works out for you.

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www.ishortsalenow.com

Ann - I have seen requests for  buyer proof of downpayment funds, as well as insistence on bank statements, not a bank letter, if the buyer is paying cash. It depends on the investor. 

Just finished one with Ocwen and ended up having to provide them the proof of funds that the Buyer had enough in their bank acct. to cover the closing cost and the difference after the loan amt.  They do ask for that!  Got our approval letter once we sent that in and It closed:)

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