Proof of funds

Foreclosures, Short Sales, Tax Foreclosures
1

I am working on my first couple of short sales. I don’t have the funds to buy the property myself and intend to sell it to a rehabber or landlord before closing…double closing. Mortgage company wants proof of funds…how do I come up with that when I don’t have the funds?

2
  • try a pre-approval letter
  • if lender won’t accept pre-approval, go the next step and get a loan commitment letter
  • if you have a mortgage person on your team, this shouldn’t be too hard
  • use your partner’s or buyer’s bank statements (you can just tell them they can black out sensitive info)
  • if you have a relative who has the money who trusts you, get them to add your name to their account.
  • use 401k statements if you have it
  • establish lines of credit and use that as proof over and over and never touch the LOC
  • you MIGHT be able to get a “loan commitment” type letter from a private person - low chance this would work but you can try as a last ditch effort
3

Thank you…all good ideas!!