Atlanta Internet Buyers:
Proof of Cash Funds Letter Must For Everyone
Atlanta Internet Buyers - Proof of Funds Letter A Must For Everyone for every purchase. Any offer must be substantiated for the Seller to consider it. Any person could say they have the money in Cash to make the offer more appealing. The PoF Letter verifies the availability of the money.
While one wishes it isn't true, agents have (KNOWINGLY) submitted Cash offers to get to the top of consideration and then request a change to Mortgage once their contract is accepted. Not an honest approach...
In the Georgia Association of Realtors Forms, F79 deals with an ALL CASH SALE. Included in Item #1 is a Buyer option to supplement the capacity for All Cash with a Mortgage. If the Seller agrees to that stipulation, then the change is already part of the Purchase and Sale Agreement.
The key component is transparency and honesty within the Offer.
GAR Form F79, in Item #3, includes the phrase "funds ... and/or assets". That means the Seller may determine that selling Assets is, or is not, acceptable. Why? Because ABLE TO GET the Cash is not the same as HAVING the Cash.
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, listed the following items that are not actually Cash in one of her posts :
- In the process of selling stocks or mutual funds
- Holding a certificate of deposit that has not yet matured
- Borrowing money from a relative
- Refinancing a personal residence to raise the cash
- Waiting for a probate court to distribute assets
- Borrowing against securities
- Liquidating funds from a retirement account
- Obtaining a mortgage secured to the property they are buying
Cash means CASH - not the ability to get it. The Seller needs PROOF that if the offer is accepted, the transaction will progress and Close on time.
- The Seller may ask the Buyer for the Proof of Funds Letter to be Notarized before the letter will be accepted.
The Seller may ask for a different form of Proof of Funds which could be a copy of the Account Statement for the Cash. [Of course, any account numbers should be redacted before the statement is submitted.]
Most Atlanta Internet Buyers are looking for the best deal they can get for their purchase. Having their Proof of Funds Letter ready ahead of time is a very important step.
Readiness may make the difference between losing out because Buyer had not prepared ahead or being the successful Offer for the Purchase.
Icon courtesy of "anonymous".
Draft of POF letter FOR ILLUSTRATION ONLY.
Not suggested as a Legal Document since author is not an attorney.