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Updated over 8 years ago,

User Stats

222
Posts
34
Votes
Neil G.
  • Investor
  • Socal
34
Votes |
222
Posts

Investigating CASH Purchase in 'THIS' Neighborhood

Neil G.
  • Investor
  • Socal
Posted

Theres goes the neighborhood! or should I say, THIS neighborhood as Mister Roger's song has somehow mysteriously changed?! https://www.youtube.com/watch?v=zMUGJZrR9Jg

Recently closed on a house and follow up visited after 2 weeks but new owner was not home but neighbor was home and mentioned 2 'Molder & Scully' types came by asking questions including to describe the person that now lives there. I was surprised to find that they were apparently told the house was purchased with funds they are now investigating the source since was cash. 

Anyways, I told the neighbor I'd ask for full names and badge # and call their head office before I even open door and/or talk over my gate to folks esp once claim to be officials, collecting info, esp with all the fraud and shootings going on even by blue collars.

So the neighbor said there seemed to be an interest in source of cash funds. So strangers go around telling neighbors the new neighbor bought their house CASH now?! sheesh.  Me, in this day and age I dont sell any other way, ie, I don't go to contract with unneccessary contigencies, ie the buyer committing to purchase only on the condition that they will somehow secure the funds since they dont yet have them, but, hey, to each his own. But after running this by the escrower, it appears they are dealing with an increase in inquiries whenever they transact a cash sale. This is new to me cause I would think there's more loopholes for fraud in mortgages, loans, lines of credit, etc! But apparently they are now requiring 2 statements showing the funds steadily in buyer's account for over 30 days. I could swear this used to be only for loan underwriting, not CASH underwriting! Sign of the times, I guess. 

Anyways, so I'm wondering would it be superfluous to require of cash buyers to now show the funds were in their account at least for over 30 days? Which would generally mean 2 consecutive statements. Again, totally new to me but nothing surprises me anymore in this police state.