Realtor says HUD needs bank statement?

Question

Trying to make my first HUD offer. I'm working with the listing agent of a property and am trying to make a cash offer of 30k. The agent is asking for a bank statement to show proof of funds. I don't want the agent to see my bank statement because 1) it has my information and 2) it will show quite a bit more than 30k. I heard that if you go to your bank, they can give you a letter saying you have enough funds. Is this acceptable for HUD? And what do I ask for when I walk into the bank? Ie... "Hello, I need an official proof of 30k worth of funds for HUD" will suffice?

Because the listing agent is like as informative and charming as a brick wall, I wanted to ask you guys on here first. Thank you everyone!

Bryan L. · Answer

Don't worry about the bank statement showing more than 30.  It doesn't matter to HUD at all that you have more money.  If you meet their minimum price, they will accept your offer.  Also, take a black sharpie and mark out your account numbers if that will make you feel better.  Really, we send in bank statements like this all the time as proof of funds.

Steven Burrows · Answer

@Bryan L. Great advice that I think I'll follow so you won't have to say it 102 times.

Stan Butler · Answer

I do exactly what @Wayne Brooks says.  I download my bank statement in PDF format and then redact all of the account information.  This is what I use for all REO, Short Sale and HUD offers.  Never had any problems...

Sarah Vanelli · Answer

@Bryan L.

Haha, you are absolutely right, and I've listened to the choir, drank all the kool-aid at the BP party, and am in an agent licensing course.  :)

I was actually just talking with my husband after I posted (maybe as you were posting lol?) about whether or not is would have been better to start searching and investing after I already have my license.

Bryan L. · Answer

I've probably said this 100 times, but here's number 101.  If you plan on making offers on MLS-listed properties (and HUDs are on the MLS typically even though the offers go in through their own website), then you are very well served to become a Realtor yourself.  SOOOOO many advantages.  MLS access, plus the ability to write and submit your own offers, plus the ability to gain access to properties on your own, etc, etc, etc.  Not to mention making a commission check when you buy (and sell).  Do some searching here on BP and you will find many discussions on the benefits of becoming a Realtor.

I would say that I sound like a broken record, but so many people these days have never even seen one, much less ever listened to one.  Would they even understand what that phrase means?  Damn, I feel old.

Sarah Vanelli · Answer

Thanks everyone! This has been very helpful. I will go with getting a Proof of Funds letter from my bank. The main issue hadn't been so much HUD seeing how much I have, but the agent seeing how much I have. The place doesn't need extensive/expensive work and he kept trying to get me to offer more.

Andrea M. · Answer

I have had the bank/credit union tell my clients in the past, they can not write the POF letter, as the client can go to another branch and close / withdraw all the funds. Bank Statements usually works and you can black out the account number to protect yourself. HUD just wants to make sure you have the funds to close.

David Krulac · Answer

@Sarah Vanelli

You do NOT need a bank statement.  HUD requires a Proof of Funds.  We use a letter from the bank, on color bank letter head that says something like "Sarah V. has a current account with our bank with a balance of $30,000."

You would need to submit the letter with each contract with HUD, but if you are doing multiple concurrent deals with HUD have the bank make you say 5 originals.

No account numbers needed, no personal information provided, and if you have a million in your account the custom letter only says you have $30,000 needed for this specific deal.

Realtor says HUD needs bank statement?

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