How To Get PROOF OF FUNDS When Flipping Short Sale??
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
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
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.?
letter from hard money lender.