Seller won't provide bank with Sche-E returns

[Manny Rivas]

Seller accepted my offer for a 13 unit complex and I've just submitted my deposit to escrow. His realtor calls me today and tells me that commercial financing will no longer be an option because the seller will not provide the bank with his Schedule-E returns. 

Realtor stated that he is "hiding money" as the main reason.

What options do I have? I'm trying to secure financing with a bank that can work with only P&L without Sche-E.

[Evan Polaski]

@Manny Rivas, was a schedule E a required doc in your contract?  

I would talk to your lender and see what they require.  If they require the Schedule E, than your option is to tell seller that without it you cannot secure financing, and without financing you cannot close.  

While I know owners do this all the time, I would be curious for some type of clarity on what is represented on Schedule E vs the P&L.  It is very likely the owner is pushing through non-business expenses to the property, which is somewhat common.  The question is: is there something on the Schedule E that should be on the P&L and he isn't disclosing accurate financials.