Where are the transactional funders?

Question

So, what are you doing with your other investors who are putting offers on properties to have the servicer come back and say they need a bank statement??  POF in third party names are no longer acceptable with BOA or WF??

Richard Graham · Answer

I faxed my offer to the foreclosing attorneys office at 4:45 the night before the sale on a WF deal and got it stopped with a letter printed off Coastal fundings website.  One note to this deal is the offer included full payoff to the 1st (WF) and shorting the 2nd and 3rd.  Thisw was in August.

Ayo F. · Answer

Thank you will. I got a pre-approval letter in addition to the bank statement and got an email via equator that a BPO has been ordered. I hope that is a positive sign?

Will Barnard · Answer

That said, it is usually accepted with an explanation letter that the name on the proof of funds is the partner and the name on your contract should be that of your entity and not your personal name.
If that fails, and in a situation where it is the uncle, simply open up an acount in the name that is on the contract, transfer the funds into the new account, and stipulate that account can only be accessed by the Uncle. Then supply the POF.

Ayo F. · Answer

BofA asked me for POF and I provided them with my uncle's bank statement (He is funding the deal for me). His account had the purchase price. Cool Ca$h :)

They declined my short sale the following day stating that the name on the sales contract does not match the name on the bank statement and that both needed to match.

Please, has anyone experienced this problem when using private money (Not HMLs)?

Thanks

Duane Ortega · Answer

"So, what are you doing with your other investors who are putting offers on properties to have the servicer come back and say they need a bank statement?? POF in third party names are no longer acceptable with BOA or WF??"

Yes, we have experienced some of our customers needing a bank statement.  To answer your question, once they asked us, we made arrangements to provide it to them.

Laura Alamery · Answer

In cases that lenders do not accept POF letters (which is starting to happen in short sale situations,) I suggest to find a partner who has a liquid bank account (i.e. savings) to provide the required proof of funds and fund the deal at closing. 
This will work as well, especially if you are flipping the deal, and it might even be cheaper than transactional funding.
Just educate your money partner how the deal works and that his/her money will be handled directly by the title company, etc., and you will not have a problem.

Joshua Dorkin · Answer

Folks - Maryann wasn't soliciting Transactional Lenders, she was asking a question.  Any solicitations made in this or any other discussion thread will be removed.

Michael Allan · Answer

We send out POF letters for our clients.  From what I can see the majority of the objects are coming from the listing agents as they are not familiar with transactional funding deals.  It seems easiest for them to blame the bank, rather than themselves for denying the letters.

We have also seen them rejected by WF, however it is not common and seems to not be a company policy but office/negotiator specific.  The same can be said for their approval letters.  We have seen them include a 0, 30, and 90 day required holding period.

In the past, I have spoke with the seller or seller’s agent regarding the POF which they then tend to accept after originally declining.

Let me know if anybody has issues as we are here to help.

Thanks

Mike

Kelli Kincheloe · Answer

I saw the same thing today.  Bank of America has just changed its policy of POFs and is no longer even accepting investment account statements as a Proof of Funds.  They are requiring either checking account statements or savings account statements.  I personally haven't had any issues with a POF letter yet.  But I have colleagues who are experiencing issues with these new changes.

Maryann L. · Answer

No.  No one has said to me they wouldn't provide a bank statement.  I suppose it's not a big deal as long as account numbers are blacked out.

I'm just wondering if these new policies are forcing private lenders to change their protocols.  We have done short sales on the fly stopping a foreclosure only days away, and can print a POF with ease, this adds a step where we would need to wait for a private lender to provide something additional.  Obvoiusly this holds things up a bit.  It's just ANOTHER thing to work through.