I figured it was a scam, but decided to call just in case it was legit. 

Also you have to figure out how to give them enough info to know you are not scamming them and yet not give away enough information for them to find out for themselves how to get the full 29k without using you. 

Yes the city has requirements but most services I’ve encountered makes the process pretty painless for the investor.

It should be most of it but that will tell me really how it is - scam or no scam.

Have u encountered anything like this?

In fact, every time I've encountered a scenario where AO is a good fit, it's someone that could easily get hard money anyways, this is just going to be at a far far better rate/points combo.

IT IS NOT A SCAM........IT IS A SIMPLE, PROFESSIONALLY EXECUTED, VERY LUCRATIVE INVESTMENT OPTION!!!!! 

The only national bank we have encountered that has made a business decision not to hold such trust accounts is Chase.The issue is that it will be your responsibility to educate your banker on what you need. 

While at the last year, it was not a couple months passed before I encountered yet another $$$ problem with my MF.

So, I don't really encounter the problems you list.