Can anyone tell me if you must have proof of funds befor banks will work with ytou?
Traditionally, offers for short sale were required to have proof of funds with the offer submission, but I have submitted many offers since November of 2007 that did not include proof of funds or pre-qual letter. However, because the process takes so long, the buyers are able to secure a pre-qual letter or proof of funds well in advance of closing.
Lenders will require 15 days at most and sometimes 10 days to close once you have approval, so just be ready to close in that time if you are willing to offer on a short sale.
I send pre-approval letters on all my deals. Just in case and it seems to “speed” things up. So far I’ve been lucky and have been getting at least 30 days to close after receiving an approval. The most I got so far was 45 days and that was with American Home Mortgage. And they were not delightful to work with either.