I am not in your market, however I found your post interesting. I have assisted many clients with foreclosures and short sales and have never had a buyer provide proof of their downpayment. Proof of funds (bank statement for cash offers) or lender pre approval letter if financing.
It is not unusual for the selling bank to take their time signing their end of the paperwork. Until you recieve their addenda and both the seller and buyer signatures, you are not legally in contract.
If you do not want to provide your personal information, then counter offer. If it is standard language in their addendum, they may not waive it for you. At that point you need to decide whether it is worth killing the deal over. If I were in your position, I would go online to your bank and print your asset statement where your dp money is coming from. You can white out the account numbers and this should be sufficient.
Best of luck,
It is very common these days for banks (or sellers in general) to request a POF (proof of funds). This is more typical in cash offers, but in cases where there is a substantial down payment, it is common practive for them to ask for it.
As for the 2 hrs time, that is probably too much! If you are interested in the propoerty you can probably just sent them a copy of your bank statement with the funds in there - covering some personal data of course. They can not force you to provide that documentation, but they can condition the approval on getting the POF.
It is not that they are having second thoughts, it is that they want to make sure you are a solid buyer. Your agent will be able to provide you with more information.
To my knowledge, bank of america pays the FULL loan amount to the selling bank, and it is with BANK of america that we deal with in regards to the downpayment! So the selling bank shouldn't be asking for it! Am i not right?