Transactional funding....

[David Sirmons]

Does anyone have actual use with this? I understand the overall process, whereby the A to B close is funded by X company for a small profit. It allows the B to C close to happen. However, I'm getting mixed messages about what is required by banks. For example...

I've read that just having a POF is sometimes not enough. Some banks require an actual bank statement in YOUR name showing the ability to buy. That is a problem, since these 'trans funding' entities don't deposit anything at ALL into 'your' account. Anyone?

[Scott Hubbard]

Originally posted by David Sirmons:

Thanks for the reply! Do you have any insights into the last part of my above question? If a REO-selling entity requires a bank statement (and that amount is not IN my bank) how is this approached, or better yet, how is transactional funding able to help in this 'statement required' situation?

If the lender requires a bank statement then MOVE ON. I have purchased several REO's and NEVER had a lender question a proof of funds letter.

Chances are....if they are going to make you provide a bank statement, then they are going to make you jump through several more hoops 'til you look like a circus clown.

This is a buyer's market, some asset managers are a little slow getting the news!