A problem with cash?

[Anonymous]

My situation was a little different because i deposited the money and then they questioned it.  It was a legitimate sale I made to my father as i was preparing for closing and the repairs i wanted to make with my purchase.  MY broker called and questioned it all while I make enough money every month and the amount of cash was not even that large an amount

[Anonymous]

It's up to the banks an the gov what is allowed not us. My wife was not on my mortgage but had sign a gift letter for money of hers used towards the sale. The money had to be sourced and documented, that is why selling something to a spouse would never work. Also not all states allow separate finances. How the mortgage gets paid for in the future is not the banks concern.

[Bratbaby]

Just for the sake of clarity...

I live in Colorado, which is not a community property state. I'm qualifying for the mortgage solely on my income. The down payment is the proceeds of the sale of a house I bought with my ex- husband in1993; the divorce decree stated that when our youngest child graduated the house would be sold and the proceeds split. So that is entirely mine as well. The only hitch was that we now need to use some of our planned closing cost money toward closing costs. I don't see it as defrauding the bank.

[Bratbaby]

Sorry...toward the down payment.

[Anonymous]

I don't think anyone is accusing you of defrauding the bank.
The problem with cash is if the bank has no way to source the money. From their perspective it could be drug money, stolen, borrowed from the mob, ect...they just won't take that risk. It's fair to them to ask since most people don't make it a habit of keeping large sums of money tucked away.

The banks make us jump through a lot of hoops and we are at their mercy.

[Anonymous]

I do wish you the best of luck and hope you find a solution.

[Bratbaby]

We are indeed! I'll be a happy camper when I get the keys.

[ezdriver]

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@Bratbaby wrote:
Just for the sake of clarity...

I live in Colorado, which is not a community property state. I'm qualifying for the mortgage solely on my income. The down payment is the proceeds of the sale of a house I bought with my ex- husband in1993; the divorce decree stated that when our youngest child graduated the house would be sold and the proceeds split. So that is entirely mine as well. The only hitch was that we now need to use some of our planned closing cost money toward closing costs. I don't see it as defrauding the bank.

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No do we ... but what matters is how the lender looks at the asset and what type of documentation of said asset it will find acceptable. There are specific documentation rules with which all borrowers must comply. Remind yourslf of this because you will be asked for a lot fo stuff between now and the time you get the keys to your new house ... and none of it is personal. It is all business and regualtions.

[DallasLoanGuy]

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@Anonymous wrote:

Actually you do have to intend to defraud someone to be guilty of it.   touche'   my bad.  what i meant was.... you dont have to 'intend' to defraud.... but if you intend to hide or launder money.... you committed fraud. even if you think your 'SCHEME' is legal

If the husband has cash and is not on the mortgage for whatever reason most likely for the benefit of a better mortgage product why is this not fraud if they are intentionally keeping him off of the mortgage so that she may qualify for a mortgage or a better one? thats not fraud They are both benefitting by excluding one of them for the mortgage. That is the definition of fraud.  Will he not be paying toward the mortgage? 

If she (wife)owns something and chooses to sell it even to her husband she is allowed.  <= as described earrlier, this would be money laundering. which is fraud. a federal crime.  There are better solutions like using the cash toward bills but when the uunderwriter goes through this why is there no red flag when they see your usual monthly obligations are no longer comiing out of your account?

Hopefully everything works out the OP.

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