Proof of Funds

I’m working on shortsale, and the 2nd lien holder, America’s Servicing Company, is asking for a proof of funds letter from my bank to verify that I have the cash to do an all cash deal. The problem is, that I am flipping this property to another buyer, and planned on doing a double closing. Anyone know a way around the proof of funds lettter?


Howdy Prodempsey:

Make contact with a hard money lender and get pre-approved with them. They will then give you a letter. You may want to use them in case your sale falls thru and you want to buy it yourself.

I actually have an “approval letter” from my investors that I work short sales for. It is a standard letter unless they have an actual letter from a mortgage company etc. -
here is what the letter says…on company letterhead of course.

This letter shal serve as proof of funds for the purchase of the property located at ____. Funds in the amount of $ have been escrowed for closing upon acceptance of buyers offer.
We have an active lending relationship with the borrower and look forward to working with him/her on additional transactions.

If you need further assistance please feel free to contact me.


Residental Lending

hope that helps.

it has never been questioned.

So are you saying you got a Proof funds letter from another investor? My credit score is under 500 and been trying to find a pre-approval letter from different HML, still no luck, They say i need 550 or more, any suggestions?

I guess what I am saying is that a lot of my investors that I do short sales for work directly with a “hard money lender” or use the same mortgage company to purchase their homes. Use a legitamate proof of funds letter.