Proof Of Funds Letter Not Permitted?

A proof of funds letter can be referred to by many names as well as the traditional meaning of a letter that states you have funds available to close a transaction. A proof of funds letter is often used in real estate short sale and REO purchases to provide explanation that the purchaser or buyer has the power to purchase the property they are making an offer on.
No doubt, the currently overworked loss mitigation or short sale negotiators want to be sure that they are working with a buyer that can perform. They want to know the buyer has the assets if an agreement can be bartered on the real estate property.
A "leased proof of funds letter" appertains to monies being deposited into a clients private or business deposit account by an investor for a fixed fee. The bank "blocks" the money so that it isn't allowed to be withdrawn by the client; however the money is in the account to show evidence of funds. Additional terms used for this kind of transaction are "standby letter of credit" and "blocked funds letter".
The Wall Street Journal reported that the U.S. Attorney's office said "persons who were looking to temporarily lease funds in order to enhance their creditworthiness when applying for loans were instead provided with false proof-of-funds letters on bank stationary showing the funds had been deposited in their accounts."
Needless to say, it is imperative to grasp the difference in the kind of proof of funds letter obtained. If you can access private funds, HELOC loans or funds that may be borrowed from friends or family, then providing bank statements would provide the obligatory "proof of funds letter" paperwork.
If interested in legitimate "transaction funding" or "acquisition funding" for short sales or REO flips, a traditional "proof of funds letter" can be obtained. Look for a bank or financier that is providing transaction funds for the total amount of the acquisition cost without regard for your money or credit situation. Generally an acquisition funding fee is between 2-5% of the total of funds used to flip the property at a "double" or "simultaneous" close. This {cost|charge|fee| is taken from profits at the closing.
Learn how to obtain legitimate guaranteed transaction funding with no cash or credit needed. Do you need a proof of funds letter? Learn about Transaction Funding and check out www.WeProvideTheFunds.com
Other sites worth checking out:
Proof Of Funds And Transactional Funding
Transaction Funding Available For Short Sales
Proof Of Funds And Transactional Funding