Tell Them It's Cash Even When It's Not?
Is there a problem telling the mortgage company I'm trying to do a short sale with that it will be a cash transaction, even if I'm not sure how I will pay yet? I can show them proof of funds, but I don't necessarily want to use those funds. Would they get ticked off to find out that I am trying to secure financing, e.g., it might hold up the deal, or for any other reason?
You can pay however you like. I'm no expert but if you have 30 days to close you have 30 days to close. No if, ands, or buts about it!
If you bring a cashiers check to closing then it's cash. I've done it, gotten the cash from maybe two different sources including a loan. I bring the cashiers check to closing. A commercial loan works out more this way. Less paperwork, loan in advance and a cahiers check at closing. Also, can use a line of credit established by your bank based on the equity in other properties. If I take a loan on my equity line, it's still a cash sale. I don't know that I'd pretend that I'm not getting a loan though. Are you in danger of losing the deal if you have to get a loan? I can't imagine that they care if you are able to show enough assets and they get their money.
If the lender has accepted you and/or your identity they really do not care where your money comes from. Of course if you are making it yourself on some form of advanced printer they might take offense.
Just proceed onward money has spoke.
Sounds Great Lucius
Being a Loan Officer with a direct lender, I can tell you that if I was doing your loan I would require that the money come from one of your bank accounts (checking/savings/money market) and that it be seasoned for a minimum of 2 months and that should not raise any flags from the underwritters.
I take back my last posting, I spoke with a few of my sub-prime AEs (Account Exec) and ask how long do the funds need to be seasoned, and I did get a couple that did not care about seasoning or how long the money was in the account, but it has to come from one of your banking accounts
If you are doing a short sale it does not matter where the money comes from. Dig it up from the back yard. Drug money may be a problem. If you can get some from Sadam it may be a problem too. My seller just asker for proof of funding a I gave them a letter from a hard money lender. Banks are getting picky about short sales with wholesalers and flippers but will not matter where as long as it is green and with in the allowed time to close.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
I would be honest with the bank, because you might run across them again. Let them know exactly what your doing. I they want cash then there is no way around that but to come of with the cash from somewhere. Maybe they don't care if you get finacing. Good Luck & Happy Holidays