Fun with Short Sales - Could be my 1st equity deal!

[Christopher Prince-Barry]

Hey BP Nation,

TL;DR: Do banks really expect $350k seasoned in an account to accept an offer on a short sale?

Short version:

Hopefully my first equity deal!

- Found a tall grass house in my neighborhood.

- Wrote a letter to the owner.

- Turns out to be a short sale.

- Three lien holders.

- Primary is Wells Fargo.

- Seller's agent now repping both seller and my partner and I as buyers. He represents that the hard money loan (HML) approval letter is not enough for the bank to accept the offer. He relayed that bank wants to see $350k (asking price) seasoned in an account.

Questions:

1. Is that normal? (How many people have $350k not out there working for them?)

2. Contract is under my partner's LLC. Is showing funds in either of our 401k-s an option?

3. Would showing access to funds via line of credit work?

4. Would having a friend with a seasoned account write a letter "backing" the purchase work?

Bonus:

The selling agent is a long time friend of the seller, real estate investor, never used HML for deals, "doesnt want this to go to sheriff auction" for friends sake.

How much do I trust what he relays about the bank's position? 

Last: I am a big fan of BP! I have learned tons here. Thanks all. 

PS. @Joshua Dorkin @Brandon Turner @David Greene thank you for changing the lives of my family forever!