Oh no ... don't tell me you have cash ... as in cash cash!

This is a great post as we  have a clause in the California Purchase Contract about Verification of Funds and frequently agents don't understand what it means. When I teach my Transaction Management class, I explain it this way... 

Before the verification clause, a buyer might have declared, "Oh yes I have the money....WELL actually I don't, but see my grandma's sick in the hospital and could go any day now and I'll recieve an inheritance!" That, my friends is not an example of LIQUID ASSETS! 

Just a month ago a buyer told my husband his funds for a million plus cash deal property was "Tied up with the treasury." No go on that one either! 

I have had a few cash deals lately but each one produced a proof of funds in order for the offer to be accepted.

Some people are just weird. Starting in Real Estate in the late 80's in South Florida have seen suitcases full of cash. Rules have changed.

You are right on about the loan. Buyer must have a paper trail as to where it came from.

Funny and good post.  I have only once been confronted with that question by a buyer client.  He had $150,000 in cash socked away in his mattress I assumed and wanted to get rid of it.  He was ready to cart it over to the escrow company when I told him that unfortunately cash is not always king in this type of situation.

So we have to prove that we did not comit a crime by putting say some money every month in a coffee can in the freezer ?

With the amount of hacking scams and bank fraud,  more and more people are going to cash and money orders and staying away from banks.

I hope the person who burried their cash in the backyard sealed the money in a waterproof casing! Too funny!

Cythina - I've heard of all cash buyers trying to bring the entire amount to closing, but I've never heard of financed buyer doing so.

I've had a bunch of cash buyers but so far no one diggin money out of the ground or pulling from their mattress. Escrow is pretty clear about the funds and the banks are even bigger sticklers these days. It pays to remind each buyer of this early in the process.

Cynthia... disclosure, disclosure, disclosure.  It just has to be.  Show a paper trail.  Verify it.  And if you don't want to be mixed up in mortgage fraud, make sure whatever the source is, make sure your lender is aware.  They should be able to give you some ideas about how to stay within the law.

The government needs more control of our lives and we always sheepishly oblige them at all times and at all costs. Last night the congress passed legislation that allow our phones and computers tapped all the time at the discretion of the government. WE let this happen an now we and our children are going to pay. This is just one example.

Never dawned on me when I read the title what this post was about . . . oh, right . . . paper money!  HA, it's not illegal to own legal tender.  Just not very common.  Always reminds me of the movie with Debbie Reynolds (the REAL Debbie Reynolds movie star), Calamity Jane.  She hid the money in the cast iron stove, if I recall.  Up in smoke . . . Nice to see you Cynthia.  You've been away from AR for awhile.  

Witnessed the pain a number of years ago when a young married couple in our family struggled over $1800. three days before closing. No paper trail.  Do remember the meaning - PROOF OF FUNDS, VERIFICATION OF FUNDS, PAPER TRAIL, NOTARIZED CHECK AT CLOSING. No digging in the backyard; no looking among the bedbugs.

Excellent advice!

"So if you are thinking of buying a house, and you plan to use money that you have stashed somewhere other than in an account that generates monthly or quarterly statements, let your agent and lender know that upfront."

Hey Cynthia-working in South Florida with all our foreign buyers we see this a lot. The confused look on their faces when you say NO CASH is amusing. They think we are crazy:)

I know why he wants an outhouse,  however OpSec precludes me for telling you the answer.