Proof of funds?

By
Real Estate Agent with RE/MAX Checkmate 260532

Proof of funds?  We all know that when dealing with foreclosures, or "bank owned properties"  there are some hoops that must be jumped through.  This is the nature of the business.  Proof of funds refers to the cash buyer's ability to prove to the bank they do indeed have the money available to purchase the property they are bidding on.  This usually is proved by a bank statement or letter from a banker.  (these are two typical ways to show proof).  So, yesterday I was sent photos of piles of cash money.  The question is, Is this considered proof of funds?  My quick answer (and my brokers answer...and banks answer) is NO!  First off,  that picture could have been taken of anyone's cash, secondly, that cash can disappear overnight.

So what do you think?  Should this be considered proof of funds?

There is another layer to this.  This money was sent as a photo, not a pile of money delivered to my office as proof of funds.  The money was not even delivered to the buyer's agent, she was sent the photo as well.  Once again, hard NO.  However, what if it was hand delivered to deposit in brokers account?  I still say no.  What is so difficult about going to the bank and getting a certified check?  By dropping off this money you have just put the broker in the position of dealing with the money.  (This is one of 3 photos, the amount was $75,000.).  So, once again, Is this proof of funds?

Posted by

Cindy Edwards- text or call me: 423-677-6677 

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Rainmaker
554,164
Peter Mohylsky, SoWal Is HOME.
PrimeSouth Properties - Santa Rosa Beach, FL
Let me help you find your path to the beach.

Is this proof,  it without some explanation.

May 18, 2019 05:59 AM #1
Rainmaker
2,455,599
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I have some foreign clients that were put off when they were asked for proof of funds with their most recent purchase.  They stated that they weren't asked for it with their previous two purchases, which I find hard to believe, but perhaps it was the case.  I represented them on all transactions and looking back through my records, I only find receipts for earnest money and deposits, no proof of funds, haha.

May 18, 2019 06:22 AM #2
Rainmaker
794,016
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

Our brokerage will not accept cash for earnest money either.  Thanks for stopping by Brian and Peter.

May 18, 2019 11:16 AM #3
Ambassador
3,782,361
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Cindy- that photo seems like something we'd see in a movie with Marlon Brando as the Godfather. 

May 18, 2019 06:34 PM #4
Ambassador
2,286,945
1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

We would not accept this as proof of funds.  The photo could have even been borrowed from an online image source with the property details of the image stripped from the image.  I have  had a buyer client login on their banking app, pull up their account, while in my office, showing adequate funds to purchase, do a screen capture of that and text it to me.  Printed the image, and used that jpg as proof of funds.

May 19, 2019 02:38 PM #5
Rainmaker
3,193,707
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Might as well have taken a picture of a cookie jar hmmm ?

May 21, 2019 05:08 AM #6
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Rainmaker
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Cindy Edwards

CRS, GRI, PMN - Northeast Tennessee - 423-677-6677
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