U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 05-22-2015, 05:29 PM
 
9 posts, read 15,233 times
Reputation: 14

Advertisements

I'm about to apply for a mortgage and am a little concerned about them flagging a deposit in my bank account. Wondering if it's a big deal... Here's the story:

I'm on the board of my condo association board of directors and purchased $10,000+ of patio furniture on my credit card, for which I was promptly reimbursed with a $10,000+ check from the association. All of this is documented in the board's meeting minutes and the payment is from the condo association with a check stub indicating that it's a reimbursement.

Is this anything to be concerned about? I could delay depositing the check (I haven't yet), but I'd far prefer to have it in the bank...
Reply With Quote Quick reply to this message

 
Old 05-22-2015, 07:48 PM
 
Location: Austin
7,077 posts, read 16,885,085 times
Reputation: 9484
It's easier to explain with a withdrawal and then a deposit of the same money. It's hard to explain you bought it for the HOA without any reimbursement showing up.
Reply With Quote Quick reply to this message
 
Old 05-23-2015, 08:43 AM
 
203 posts, read 196,573 times
Reputation: 404
You will need to write a letter explaining the situation and provide documentation for the withdrawal and deposit. You may want to get a letter from the HOA. Is this something you do often? That would be the only thing the bank may be concerned about. We held off on making any large deposits while we were waiting to close because our loan officer said it would be a bunch of paperwork.
Reply With Quote Quick reply to this message
 
Old 05-23-2015, 09:29 AM
 
10,265 posts, read 6,491,094 times
Reputation: 10837
What you did was not smart, You should have told the association to buy it themselves. Also any time there is a transaction with a bank for over $10k it is my understanding that you have to file a government form.

You have proof of what you did, but if they question your judgement about doing it, it may hinder you.
Reply With Quote Quick reply to this message
 
Old 05-23-2015, 09:55 PM
 
9 posts, read 15,233 times
Reputation: 14
Thanks for these responses. This is the only time I've needed to purchase something of this size for the HOA - and won't need to do it again, so hopefully my judgement wouldn't be questioned.

@so954: I'm quite surprised to hear that depositing a check of any size requires me to file a government form. If this were a cash deposit, I'd agree (IRS form 8300) -- but this is a check from a commercial entity. Are you sure the information you provided is correct in this situation, for the deposit of a check?

I suppose the alternative would be to either (1) wait 2 more months to apply for the mortgage to season the reimbursement funds, or (2) endorse it to my partner, who can deposit it and send a check to Amex on my behalf.

Also, I wonder why a lender wouldn't see this as a form of employer reimbursement, since I'm a non-compensated board member. My employer reimbursements are quite a bit larger than this random deposit, so hopefully those don't need to be explained, too.
Reply With Quote Quick reply to this message
 
Old 05-24-2015, 06:20 AM
 
203 posts, read 196,573 times
Reputation: 404
We were told that ANY and ALL deposits that are not your regular salary from your employer need to be explained. This includes that $5 birthday check from Grandma and any amounts being reimbursed by your employer. Better start writing letters and gathering documents now, everything is going to need to be accounted for.
Reply With Quote Quick reply to this message
 
Old 05-24-2015, 09:16 AM
 
Location: Denver CO
18,975 posts, read 10,032,914 times
Reputation: 27746
Quote:
Originally Posted by so954 View Post
What you did was not smart, You should have told the association to buy it themselves. Also any time there is a transaction with a bank for over $10k it is my understanding that you have to file a government form.

You have proof of what you did, but if they question your judgement about doing it, it may hinder you.
This is not accurate. A bank has to file a currency transaction report for CASH transactions that are over $10,000. If it's a check or electronic payment, no CTR is required.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top