Short Sale - Proof of Funds from Cash-out Refi

[Landon Thomas]

Does anyone have experience using a cash-out refi, clear to close letter as a POF? Is that even possible? Or since it's not actually in my account yet, will it be found as NOT acceptable?

I made offers on 3 short sales in my area. One came through accepted by the seller. I made 'cash' offers and as anticipated the bank is looking for POF.

The issue, this all happened quicker than I had anticipated and the refi on my live-in/long term flip isn't going to close for maybe another week or two. The loan officer indicated that the underwriters have everything they need and we will have the clear to close 'shortly'. 

Do I wait it out to see how it all falls together? Or is there something more I can do that I'm maybe not thinking of?

I have learned and now know the obvious answer for next time... wait to have the funds ready before making the cash offers. 

[Wayne Brooks]

At this point, give them your "clear to close" commitment.  It's not cash yet, but may be by the time the agent submits all the paper work, and it's reviewed by the lender.  The bank won't look at your funding source until after they've reviewed the owner's entire package.