Proof of Funds: Is the verification of funds is to prove the buyer has a down payment or all of the cash necessary to avoid getting a mortgage to buy the property; the process is basically the same. The buyer will need to produce a document. The document can sometimes be verified by a loan officer, but more often than not, the seller and the seller's agent will want to see the actual document.
However, if you are the Seller's agent in a Short Sale the bank's negotiator will not consider your buyer's pre approval letter drafted by a loan officer; they ONLY accept one of the following as Proof of Funds:
Here are a few sample types of documentation:
· Original bank statement
· Online banking statement
· Open equity line of credit
· Copy of money market account balance
· Certified financial statement
Tip: Before handing over sensitive personal information, take a black magic marker and obliterate your account number and / or Social Security number.
Santa Cruz County Foreclosure and Short Sale Information 831-335-2100
Foreclosure and Short Sale Information - Don't Give Up - There Are Options.
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