The bank may ask for bank statements to determine qualification for going short.

Joel,I am by no stretch a financial guru but I pulled the FDIC statement they filed about 3 weeks ago.

Can I assume it was a transactional fudning letter or some other letter of statement of funds?

When they said they would pay cash did they attach a proof of funds bank statement valid within the last 30 days showing they could purchase it out right??

Otherwise, it's just breach of contract.The only possible bank fraud is in the statement about the market value.

Now they're just treating it as a storage building apparently....These statements of yours indicate that the previous owners are still in possession of the property.

However, what usually happens is that upon a sale, the appraisal district will artificially inflate value so that you will show closing statement to get the value reduced.

No more true statement than wholesaling/business is what you make it!

Looks like your exit strategy is to wholesale the REO so to do this, you must use an entity or trust as you can not "assign" the contract and this would also get you around the 90 day no flip rule if over 20%.That all said, your statement of negotiating a price that is 20% below value would not be a deal for any wholesale buyer as the spread would be too thin, especially after you take your fee.

(Field of Dreams / Real Estate Statement....lol)P.S.