Proof of Funds - Posted by Rick

Real Estate Investing Real Estate Law
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Posted by River City on May 04, 2004 at 14:38:26:

The realtor does not want to tie up the property with a potential buyer that will never close. Proof of funds means just that. They want proof that you have the funds with which to close the transaction before allowing you to sign an offer to contract.

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Proof of Funds - Posted by Rick

Posted by Rick on May 04, 2004 at 12:12:52:

When a Realtor says they need proof of funds,exactly what do they mean?I have a house I found that’s listed,I have cash buyers all lined up,but the Realtor won’t let me make an offer on the property without proof of funds.What can I do.I don’t have any money in the bank,and my credit isn’t very good.This property is priced $30,000 below assessed value,so there’s a ton of equity in it for me.It’s a rehabber that doesn’t need but about $7500 in cosmetic repairs.

Someone please help me out here,before I lose the hosue,and my 10 qualified buyers that are ready to close within 10 days of signed contract.

Thanks
Rick S

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Re: Proof of Funds - Posted by BobEberle

Posted by BobEberle on May 06, 2004 at 09:16:15:

In my area if a Realtor is asking for proof of funds then the house is owned by a bank. If it’s owned by a lending institution they are usually going to have their own addendums that they will require to be added to all of the standard MLS paperwork. If the MLS purchase and sale agreement doesn’t contain a no assignment clause then the banks addendums will, bet on it. If that’s the case which I’m guessing it is, you not going to be able to assign it so you’ll have to take title to it at a closing. Now if your buyer has cash or financing that has no problem with seasoning you could do a double closing and flip it that way. All of this still doesn’t address the proof of funds issue. With no money and bad credit the only alternative I can think of is if you can find a hard money private or bank lender that will give you a prequalification letter. Proof of funds requirments usually say proof of funds for all cash offers or a prequalification letter. Hope that helps.