Does it make sense or it is illegal to rent letters of credit or proof of funds letter! And does anybody know of a free service that provides proof of funds letters.
Here is something creative that I have seen people do in my area for sourced and seasoned funds.
borrow $100,000 and deposit it into the credit union as a CD and then borrow the same amount from them against the first 100K to pay that off and then just make the monthly payments of interest which are less than $200..(because you are earning interest on the CD while paying the loan interest)
That would give you proof of funds so you could make your offers and then seek alternate funding.
I hate these types of commercial lenders. They ask for fees up front to offer a LOI. Then they come back and say now we need a fee for our rep to come see the property. Then it is another fee of 5-10k. I do not use these companies. I have been in the commercial and residential lending business 15 years. There is no way I would even approach a client with up front fees. That is fraud!!!!
If it makes since. The lender does not need a fee up front. Just as it was posted earlier, it is a scam. Never pay anything but the cost of appriasal to anyone. This subject really Erks me every time I see it. ERRRRRRR!!!!!
I only use one source for my cash for a day deals and I can print out proof of funds letters anytime I need them for my offers up to $50 million. Fees are low and taken out of our profits at Closing. Yeah, and no credit too!
Some of the so-called short-sale GURUs recommend doing this--some even offer to give you one through a company of theirs. Be aware that any lie you tell the lender is fraud, and unlike some gray areas that investors may get away with, they aggressively prosecute lender fraud. On the good side, you get free room and board and even free dental care.
[addsig]
Attorney escrow: I am looking for the statement that can be used in a purchase and sale agreement that can state correctly that the buyer wants to use an attorney escrow or private escrow vice a regular title company. I am in Oregon.
Attorney escrow: I am looking for the statement that can be used in a purchase and sale agreement that can state correctly that the buyer wants to use an attorney escrow or private escrow vice a regular title company. I am in Oregon.
I think there is a big misconception about POF letters.
A legitimate company, which provides Transactional Funding, will provide also a free POF letter, stating that they will make the funds available for your transaction at closing, not that you have the money in your account, when it is not there, or also false statements.
It is not legal or ethical charging upfront for a false POF letter and I know of companies that got in trouble because of that.
I use all the time legit free POF letters and I never had a problem with a bank dealing with me for short sales, REO or buying notes.
[addsig]
There are big scams done with rented or leased lines of credit.
If you want a legit proof of funds, your bank/brokerage will gladly provide one for free.
It is fraud period
Here is something creative that I have seen people do in my area for sourced and seasoned funds.
borrow $100,000 and deposit it into the credit union as a CD and then borrow the same amount from them against the first 100K to pay that off and then just make the monthly payments of interest which are less than $200..(because you are earning interest on the CD while paying the loan interest)
That would give you proof of funds so you could make your offers and then seek alternate funding.
Perfectly legal.
[addsig]
I hate these types of commercial lenders. They ask for fees up front to offer a LOI. Then they come back and say now we need a fee for our rep to come see the property. Then it is another fee of 5-10k. I do not use these companies. I have been in the commercial and residential lending business 15 years. There is no way I would even approach a client with up front fees. That is fraud!!!!
If it makes since. The lender does not need a fee up front. Just as it was posted earlier, it is a scam. Never pay anything but the cost of appriasal to anyone. This subject really Erks me every time I see it. ERRRRRRR!!!!!
I only use one source for my cash for a day deals and I can print out proof of funds letters anytime I need them for my offers up to $50 million. Fees are low and taken out of our profits at Closing. Yeah, and no credit too!
This is called mortgage fraud if you are borrowing money from a lender in the transaction. Jail time is involved if convicted.
Some of the so-called short-sale GURUs recommend doing this--some even offer to give you one through a company of theirs. Be aware that any lie you tell the lender is fraud, and unlike some gray areas that investors may get away with, they aggressively prosecute lender fraud. On the good side, you get free room and board and even free dental care.
[addsig]
Attorney escrow: I am looking for the statement that can be used in a purchase and sale agreement that can state correctly that the buyer wants to use an attorney escrow or private escrow vice a regular title company. I am in Oregon.
Attorney escrow: I am looking for the statement that can be used in a purchase and sale agreement that can state correctly that the buyer wants to use an attorney escrow or private escrow vice a regular title company. I am in Oregon.
I think there is a big misconception about POF letters.
A legitimate company, which provides Transactional Funding, will provide also a free POF letter, stating that they will make the funds available for your transaction at closing, not that you have the money in your account, when it is not there, or also false statements.
It is not legal or ethical charging upfront for a false POF letter and I know of companies that got in trouble because of that.
I use all the time legit free POF letters and I never had a problem with a bank dealing with me for short sales, REO or buying notes.
[addsig]