Real Estate Investing Forums

Real Estate Investing => Financing, Hard Money Lenders, Private Money => Topic started by: jp_barnes on August 21, 2007, 04:22:36 pm

Title: Proof of funds please.
Post by: jp_barnes on August 21, 2007, 04:22:36 pm
I am trying desperately to get a mortgage broker or lender to get me a proof of funds letter so that I may negotiate a short sale. However, I cannot get anyone to say okay without pulling my credit and getting me pre-approved (which I don't want to do).

If anyone has any idea how I might obtain this ASAP, I would appreciate a PM..

Thank you,
Jeff


Title: Re: Proof of funds please.
Post by: MarkieMark on August 21, 2007, 06:28:38 pm
I am trying desperately to get a mortgage broker or lender to get me a proof of funds letter so that I may negotiate a short sale. However, I cannot get anyone to say okay without pulling my credit and getting me pre-approved (which I don't want to do).

 :shocked  How could you expect them to do anything different?
Title: Re: Proof of funds please.
Post by: Iron Range on August 21, 2007, 06:43:12 pm
Brokers put their reputation on the line everytime they give a preapproval letter/proof of funds. They will get black listed by Realtors if they hand them out without making sure they can actually get the loan approved. Some Realtors will actually refuse to accept a letter from a broker they have been burned on by that broker in the past. 

Title: Re: Proof of funds please.
Post by: Investment Loans on August 21, 2007, 07:03:02 pm
Yep.

I rarely even give out rate quotes and terms without doing a consultation or due dillegence.

There's just too much at risk in getting a bad name in this industry for not being able to deliver.
Title: Re: Proof of funds please.
Post by: REI4ROI on August 21, 2007, 10:05:59 pm
First of all, the broker is not issuing anything---the investor is the one that issues the POF because it's their money on the line...

What is being asked is SOP (standard operating procedures) for most HMLs---how can you expect a POF to be issued without letting the investor know the "whole story"? 

Regards,

Scott Miller
Title: Re: Proof of funds please.
Post by: jp_barnes on August 22, 2007, 04:57:58 pm
That info is all well and good.  However, I'm not saying I won't let them in on all the details of the deal before asking for the POF.  If you must know, here are the details:

$830k FMV
$600k 1st
$150k 2nd (which I plan to discount)

Foreclosure in a few weeks.
 
Therefore, I need a proof of funds showing that I can cover the discounted cost of the 2nd, which I hope to be in the neighborhood of $10k-$20k.

Everyone seems to think that their reputation is on the line for a silly letter stating that funds are available should they be needed.  Do you really think a mortgage company that is about to go bankrupt is really that worried about whether or not it is your money that they get paid off with?  I sure hope that isn't what keeps you awake at night.
Title: Re: Proof of funds please.
Post by: buffinvestor on August 22, 2007, 08:29:53 pm
Everyone seems to think that their reputation is on the line for a silly letter stating that funds are available should they be needed. 

 
JP - I can't believe what I just read....That "silly letter" puts their reputation on the line, and who knows what kind of legal twubble they can get into if the seller decides to sue based on non-performance for a loan that doesn't get funded....If I were a lawyer, I'd sure sue the lender if they issued a letter stating the borrower was pre-approved but they actually weren't...Lawyers will sue anybody who's within 5000 feet of the accident!

Remember, also, there's a difference between being pre-approved vs. prequaified...


Do you really think a mortgage company that is about to go bankrupt is really that worried about whether or not it is your money that they get paid off with?  I sure hope that isn't what keeps you awake at night.


Yeah, I DO think that mortgage companies, whether going bankrupt or not, are concerned about all the deals they do due to the money they sink into the deals and the risk they're taking...Do you think mortgage companies just don't care anymore???...They're fighting for their very survival these days...Some of them will pull through, and some won't, based on how smart they operate now and how smart they've been in the past...

For the record, I worked in the mortgage industry for 7 years, including an Inc. 500 fasted growing company....We didn't grow by being stupid and not caring about what we were doing even when times were tough and the owner and I actually discussed the possibility of shutting the doors...
Title: Re: Proof of funds please.
Post by: PaulBroni on August 27, 2007, 07:15:39 pm
FWIW, my mortgage broker gave me her letter template and told me to sign her name any time I needed a letter to help calm a seller.

Title: Re: Proof of funds please.
Post by: Mdhaas on August 28, 2007, 06:31:22 am
Quote
FWIW, my mortgage broker gave me her letter template and told me to sign her name any time I needed a letter to help calm a seller.

I am sure that you have developed some type of history with her.  Otherwise, she would not jeopardize her career.
Title: Re: Proof of funds please.
Post by: PaulBroni on August 28, 2007, 07:31:03 am
Of course. She knows that I can close on any loan that I would think about getting. Not saying that I can get a $10 million loan, but saying that I only ask for what I know I can get.

Point taken!
Title: Re: Proof of funds please.
Post by: Frontier Investing on August 28, 2007, 10:15:09 am
Are you asking for a proof of funds letter or a pre-approval letter; they are both very different. Realistically a pre-approval letter means nothing and any Hard Money lender will give you one. You can even download them off some of there websites.

A proof of funds is more difficult to get. Companies will put the funds into your bank account for as long as needed charging anywhere from 3-5% of the funds; monthly. Its expensive especially when you start getting over 10mm.