When a bank requests a proof of funds letter how long before it "expires"?

Asked by marypa_c, 44118 Thu Oct 18, 2012

I am hoping a short sale goes through for us. The bank has asked for a proof of funds twice over 5 months. How long is the letter good for? i.e. does OH real estate law have a minimum length of time before they will ask for another proof of funds letter?

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6
Nancy Milton…, Agent, Edwardsville, IL
Sat Oct 20, 2012
BEST ANSWER
Hi, Mary -- If you really like that home, just be patient and give the bank what they need. Yes, they will ask for paperwork over and over again. The short sale process can be crazy, but it rewards patient buyers.

In general, only those who are serious should get into contract to purchase a short sale. Buyers who walk away from their contracts can cause sellers to waste precious time and possibly enter into foreclosure.
0 votes
Scott Godzyk, Agent, Manchester, NH
Mon Oct 22, 2012
In some cases it is every 30 days, in others it could be 60 and usually never more than 90 days the rest. There is no state law, it is based on the banks policy that they set.
0 votes
Terry McCarl…, Agent, Cape Coral, FL
Mon Oct 22, 2012
It depends on the bank - some request updated proof of funds every 30 days but others wait 60 or 90 days. I have handled numerous short sales where they didn't ask at all other than at time of offer and right before approval of the short sale.
0 votes
Barbara Klare, Agent, Fort Myers, FL
Sat Oct 20, 2012
Your answer is 30 days! They can ask for updates from both buyer and seller every 30 days. Banks don’t follow real estate law. They make their own rules…like “The Golden Rule” The one with the gold makes the rules!

If you’re tired of waiting for this short to go through, give me a call and I find you a similar home. There is plenty on the market.

Barbara Klare, Broker Associate
Gulf Coast Realty
cell: 239-292-1358
e-mail: bklare@comcast.net
http://www.cape-coral-foreclosure.com
0 votes
, ,
Fri Oct 19, 2012
Good afternoon marypa_c,

I think the best way to answer the question is to reverse the roles. If you were selling your home to an all cash buyer, how recent a statement/proof of funds letter would you want? Personally speaking I would want the most up to date statement from the Purchaser's bank(s) to verify the money is available NOW.

The fact you've been asked for this letter several times is due to the short sale negotiating process. IMHO, the short sale process is a disaster. Five months? Walk away. Short sales are a nightmare.

Trevor Curran
NMLS #40140
0 votes
I agree.

Esther Rousseau, Realtor
B8000892
Flag Sat Apr 11, 2015
Ken Beyea, Agent, Cape Coral, FL
Thu Oct 18, 2012
Hi Mary,

All banks are different in what they require.. A proof of funds letter should be good for 60 - 90 days.

http://kbeyea.advantarealty.com

Should you have more questions let me or just make another post on trulia..

Have a Great Evening and Keep it Moving Forward..
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