Need advice ASAP on deposit.

[HomeBuyer13]

I have a paypal deposit from February for $500.  This is when I sold some personal items.   

I need to submit a signed letter explaining what it is.  Should I say it was a gift or say what it really is (sold items)?

Please let me know asap as I need to submit this today.

Thanks in advance!

[foofighter74]

I can't imagine why you wouldn't just tell them you sold some personal items you no longer wanted.

[brownj12]

If you say it was a gift then you will likely need to get a gift letter. Just tell them you sold some items, if you want to make it sound even more justified say that you sold some uneeded items you found while cleaning in preperation to move. My LO saw a couple of paypal deposits and just asked if they were from selling stuff on E-Bay, I told her they were from my Fantasy Football winnings and she just said OK. No further discussion.

There is absolutely nothing wrong with selling things, and the worst thing you can do is lie and then have them ask for further documentation. If you tell them you sold something then you can always provide your paypal records and Ebay or email records if they ask for something.

[StartingOver10]

^^Exactly right. Tell the truth. The UW is not looking for a book, just a couple of sentences explaining where the $$ came from. Don't worry about it - LOE's are standard.

[HomeBuyer13]

Of course I told the truth.  

I wote the letter with exactly what I mentioned; that I sold some items on ebay that I no longer needed.

[tooleman694]

I ran into the same problem, I sold my car and had to explain the deposit of 20k.

[Mike_B03]

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@tooleman694 wrote:

I ran into the same problem, I sold my car and had to explain the deposit of 20k.

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Did you have to show a bill of sale or any sort of paper trail? 

I've read online that if you do sell something, you need to have a bill of sale to show how you got the money, but in reality how many people actually do that? Maybe for a car yes, but if I sold a TV or couch on Craigslist, no way I'd have a bill of sale.

[tooleman694]

Yup they wanted a paper trail, had to go down to the dealer I sold my car too and they provided me with all kind of stuff. I gave it all to the UW and it was good.

[Ron6262]

   I usually keep 3 or 4K in cash at home, well at this time I had 5K.  I called my LO for a pre-approval, he tells me put all cash in acct. so it can season for 60 days.  I deposit 4K the next day, that was on a Monday, listed my house on Thursday for sale.  I figured it would take 60 days to sell.  It did not, sold in 3 days, I was never allowed to use that 4K for my DOWN, luckily I didnt need it, they put me thru the ringer on it though.  I just kept saying fine, I will withdraw and not use, just leave me alone about it.  SO worse case scenario they will just not allow you to use it, it wont cause a REJECTION of the app or anything crazy.

[foofighter74]

I was going to say...worst case, they just exclude the $500 which shouldn't be a huge deal unless you really need it to close.