Anyone with experience inÂ short salesÂ andÂ REO'sÂ know the bank requires proof in writing that the buyer has the necessary funds for the purchase of the property. If the buyer is paying cash I have always advised them to obtain a letter from their bank stating they have theÂ necessaryÂ funds for the transaction.
In a recent short sale where I had the listing, the buyer submitted a letter from his bankÂ signedÂ by theÂ ViceÂ President of BankingÂ which included his contact number and email.
The negotiator with the bank would not accept the letter as proof of funds and asked for a copy of the buyer's account statment. His reason was the wording "access to cash currently on deposit". He said the buyerÂ couldÂ moveÂ these funds from this account into another account at any time. I responded by saying the buyer could still move funds from an account after he gets a copy of the bank statement. He simply said "A bank statement would be different".
I understand an actualÂ copy of the bank statementÂ is a harderÂ proofÂ of funds, but if there is any issue, the negotiator couldÂ call the Vice PresidentÂ and get clarification. If the letter was truly a fraud then what would be the end game?Â Not closing? I don't understand why banks are making the process more difficult than it has to be. In this case, it ended up being an acceptable offer and went to closing.