Proof of Funds

Foreclosures, Short Sales, Tax Foreclosures
1

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?

Thanks,
Jeremy

2

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.

3

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.

Sincerely,

Name
Company
Residental Lending

hope that helps.

it has never been questioned.

4

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?

5

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.