Then if he already HAS this account and checks for that account issued by his bank/lender...who gave him the equity line of credit...all he has to do is WRITE a check for that CASH...or he could do a WIRE of the funds in that account to escrow via the escrow instructions.
Also...is the amount in the account enough to PURCHASE the home in full? If he DOES have a true equity line of credit and checks on him and the money is IN the account..then he COULD wire the funds out of the acct and it would be an ALL CASH offer...if he only has the amount in the acct to put a down payment down on the house..then this is NOT an all CASH offer...it is just money he is taking out of his account to put into escrow as a downpayment on a house and he still needs financing to BUY the house.
the buyer can take out the loan and put the money in the bank.
When the money is in the bank,... you have a Cash offer.
DISCLOSE what you are doing as a cash offer is only good when you show proof of funds as we all know that.
I would put financing and spell it out.
What you need to do is convey it how it is. anything else could be considered FRAUD.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate Broker License # 01312992
Some may argue that since the LOC is secured by another property, not the property being purchased, this is a cash transaction. But if so, "show me the money." Until the cash is in the bank, the offer remains contingent upon availability of the LOC up until the time funds are actually drawn against it. If the LOC lender cancels the LOC or descreases the LOC limit during escrow, does the buyer have enough cash in cash accounts to close the deal? If so, then as the buyer's agent I would call it a cash offer and provide proof of those funds - even if the actual funds used to close escrow are drawn from the LOC. If the buyer can't close with cash from other sources, it is definately an offer with a financing contingency.
Good Luck and I hope you make your deal.
What does your broker say? We may all have opinions but we are not held liable if we are wrong, your broker could be. I would strongly advise you to discuss their policy on this before you proceed. That is what they are there for. Their policy may be different, more conservative that what may be technically correct and you may unknowingly violate the policy if you don't ask.
Sheryl Arndt, Broker â€“ Loan Officer
I would write it with an initial deposit to escrow and at ADDITIONAL FINANCING TERMS or OTHER TERMS sections: "buyer to obtain remaining of funds from approved home equity line of credit within 'a time frame,' or after X conditions have been met," etc. Attached with offer, if possible or if requested by seller, proof of it.