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How To Get PROOF OF FUNDS When Flipping Short Sale??

falkwillis profile photo
  • Saturday, March 13, 2004 @ 07:12 AM EST
  • 3 Comments
Hi, I am working on a short sale, sale is Thursday, 3/11, bank accepts 325k (plus additional 4k from HO out-of-pocket for release of lien for second). I have a buyer for 375k... so far, so cool. 5k to HO, and I would make 41k. Bank is willing to stop the sale if they see new contract, HUD, AND>>>> PROOF OF FUNDS for the 325k (I put 'all cash' on the prelim. HUD...) Then I would doubleclose to my 375k buyer. Only problem being: I don't have proof of funds for 325k#$%^&* Any suggestion??? Use a wealthy friend?? (I don't need the $, just a statement that it's sitting somewhere... I put XYC Family Trust and my buddy as trustee as purchasers on contract, so that could be anybody... incl. a family member with a different last name, who has the cash... I am just representing the HO in the bank's eyes.) How do you solve this issue when flipping a short sale? Thanks, Falk
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  • active_re_investor
    active_re_investor9th March, 2004
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    What is your buyer's situation? Can they deposit the fund into excrow or something similar so the deal will go through? You did not say if they are getting a mortgage or not.

    BTW - I you had to pay someone to park funds or supply a statement what would it be worth to you? Think hard about this. That might be the cost of a bridge loan or similar.

    John

  • falkwillis
    falkwillis9th March, 2004
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    Reply

    Yes, I should have stated: my buyer gets a loan (but is in place for that.)

    I just got hooked up with some friends with rather deep pockets - they will fax a bank statement over that amount+ tomorrow.

    I will still ask for a 30 day closing.

    I should be good to go, or am I missing s.th.?

  • lp1
    lp113th March, 2004
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    letter from hard money lender.

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