Rental Property Investor · Austin, TX · Member since 2014 · 40 posts · 11 votes
Hi,
We're looking at a distressed, bank owned property that requires work. We've submitted our offer to the bank much lower than their ask. The bank has requested proof of funds be submitted with the offer. We haven't encountered that request BEFORE the offer was accepted or negotiated. We decided not to provide POF. The offers wont be reviewed until Dec. 9th, I've been researching and thinking that we should submit POF. We just didn't want the bank to see we have more money than the offer and counter us. Thoughts?
Interesting.. yeah it's definitely revealing to give up the amount you have, but the bank is trying to vet the prospective buyers, as well as filter out who is good & serious compared to not ready.
If they counter due to this then I'd hold firm to original offer because that would be annoying to have provided the POF & use it to their advantage.
Can possibly ask banker to provide an official letter stating the buyer has the funds for the the offer & all closing costs..
Chase is correct you can get a letter on bank letterhead that confirms you have the liquidity. That should be sufficient. Furthermore its fairly common to request proof of funds and/or a pre-approval as part of the offer review process whether its bank owned real estate or otherwise. Makes no sense on the part of the seller to make proof of funds a requirement after an offer is accepted.