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Money is available as long as the banks are open and I can get to my safety deposit box! I understand that telling someone you have money doesnt mean squat but when I can physically put my hands on it and into the banks the same day whats the big problem.
I would think that with a large escrow amount deposited and with the premise that if I do not buy upon bank approval of my offer I forfeit said funds there should not be a problem? How does the bank lose in that scenario?
You do realize that you are not going to be allowed to show up at closing with a briefcase full of cash, right?
The funds are going to have to be wired - which means you're going to have to put them into a financial institution eventually.
Why would you be suspicious? I own a legitimate company and the cash I get from the services I provide I prefer to keep private. Of course when I want to buy something as big as a home I see that I run into this problem. I know quite a few people who have very large amounts of cash that they stupidly keep in their homes in safes. They are also legitimate business owners.
Just because one stays away from crooked banks doesn't make themselves crooked. Does it?
Sounds like tax evasion to me. So who is the crooked one here?
You do realize you are going to have to bring certified funds (i.e. a cashier's check or send a wire) to closing and not a briefcase full of cash right? You should also know that any cash transaction on anything in US over $10k by law has to be reported to the government, so it will not "be kept private".
I had folks putting down $50,000 on their new home. Lender asked them where the $50,000 was and they told him "in the bank". Lender asked for bank statements but didn't see $50,000 so lender called and asked them to send him statement, showing $50,000. Buyers said $50,000 was in safe deposit! Lender has to document those monies because the GOVERNMENT SAYS SO! Lot of it has to do with showing WHERE the monies came from...gotta make sure you aren't a terrorist AND the gov't likes when you pay taxes!
I had folks putting down $50,000 on their new home. Lender asked them where the $50,000 was and they told him "in the bank". Lender asked for bank statements but didn't see $50,000 so lender called and asked them to send him statement, showing $50,000. Buyers said $50,000 was in safe deposit! Lender has to document those monies because the GOVERNMENT SAYS SO! Lot of it has to do with showing WHERE the monies came from...gotta make sure you aren't a terrorist AND the gov't likes when you pay taxes!
Vicki
Yep Vicki, I agree and understand this train of thought. I think I will just put the money in an attorneys trust and get a proof of funds letter from them. I just do not like banks, it runs in the family lol. And I have no problem with paying my fair share of taxes either. Actually taxes have been paid on my cash for several years so that's a moot point. Thanks for all of your opinions and ideas.
...I just do not like banks, it runs in the family lol. And I have no problem with paying my fair share of taxes either. Actually taxes have been paid on my cash for several years so that's a moot point. Thanks for all of your opinions and ideas.
Just curious, how do you handle other large transactions? I assume you don't use a credit card or write checks?
You do realize you are losing money on your cash due to inflation.
Yep Vicki, I agree and understand this train of thought. I think I will just put the money in an attorneys trust and get a proof of funds letter from them. I just do not like banks, it runs in the family lol. And I have no problem with paying my fair share of taxes either. Actually taxes have been paid on my cash for several years so that's a moot point. Thanks for all of your opinions and ideas.
I also had buyers that were getting $100,000 to use to buy their new home. Monies were coming from out of the country and it still had to be documented! I even asked closing attorney about this and she said that even if they were getting 100% of the monies for their new home, monies coming in from other countries has to be documented too.
Good idea about the attorney's trust account. I've heard that once an attorney screws up their trust account, they get disbarred!!! Says safer than a bank!
...I've heard that once an attorney screws up their trust account, they get disbarred!!! Says safer than a bank!
Vicki
Well, it's good they get disbarred, but how does someone get their money back if the attorney messed around with it? At least if a bank fails there's insurance to cover your loss (if you don't exceed $250K per account).
Good idea about the attorney's trust account. I've heard that once an attorney screws up their trust account, they get disbarred!!! Says safer than a bank!
Vicki
I don't understand why you would say it's safter than a bank since a trust acct. is located AT a bank.
You do realize that you are not going to be allowed to show up at closing with a briefcase full of cash, right?
The funds are going to have to be wired - which means you're going to have to put them into a financial institution eventually.
Several years ago an acquaintance was selling her deceased Father's home. A Latino family bought it and showed up at closing with a briefcase full of $100 thousand cash. The closing company told them they couldn't just hand the briefcase over to the seller. The seller and her agent, along with the buyer and their agent had to go to the bank and get a cashiers or certified check(can't remember now what she said). Apparently the bank didn't bat an eye at someone coming in with a briefcase full of money.
I always thought that was a strange story that someone today would actually show up to buy a house with actual cash, but maybe it's not so strange after all.
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