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Jim D

12:52AM | 04/11/03
Member Since: 01/06/01
345 lifetime posts
Rockinfigz - hi, what you've described can work, if you find a lender willing to help you. You're approaching this as an honest person who's worked hard and scraped up the cash. Here's another way to think about it...big-dollar real estate is one of many ways to launder money. Realtors in CA, FL, and other places have had people walk in and plunk down suitcases of cash. They recognize it may be drug money or it may be lottery winnings - they decide if they'll ask the questions or not. There's probably a few still in jail or out of business who now wish they'd turned those suitcase holders away...

In your hypothetical situation, the lender reserves the right to demand proof that the cash is okay. They could ask you to provide past income tax returns showing your income levels, plus past utility bills, letters of reference from landlords, etc. They could ask what types of credit cards you have and want to know how you pay those bills (money orders purchased at the corner convenience store?). You may have to produce several character references who can swear you've never, ever used a bank in your life. It's still going to be up to the lender. If you look believable and sound believable, the lender may decide to work with you. If you don't look & sound believable, then you'll be looking elsewhere. They're not going to go to jail because of you!

I know personally that what you've described will work. I grew up in NE Ohio, not far from a large number of Amish and Mennonite communities. I even worked at an Amish-owned business during high school. They save their money up, sometimes in their barns, nowadays more in Amish-owned banks. I have a good friend I've known for over 35 years who is Old-Order Amish - the kind who don't have electricity in their houses, who don't own cars, etc. - and I saw him purchase his current farm in 1972 for $200,000 in cash. He and his wife had saved it up, and much of it was inheritance money from their fathers when the fathers passed away - because they didn't use banks.

So, it's possible. However, should you try to make a home purchase this way, it may or may not happen. Regards to all! Jim D/Heathsville, VA


Rockinfigz

09:04AM | 04/11/03
Member Since: 04/01/03
8 lifetime posts
hey Jim u just answered my question thks alot!!

clareezine

10:28AM | 04/11/03
Member Since: 02/20/03
6 lifetime posts
Slide9949
so y were saying that my bank was asking about verifying the account of the gift money from is out of regular procedure?
cause they've been asking all kinds of documents to prove the gift money, say, withdraw recipt, cleared check, and now even the account statement.
I know I do need to take care my collection accounts. But in the very beggining the bank told me we'll do all that at closing date which they didn't tell me I'm suppose to call my creditors myself, which I assumed I'll pay they and they'll pay my creditors.
now that I'm thinking about going to call up my creditors and pay off my debt.
Here's my another question,
1. Should I go to somebody else instead of staying and continue to be fooled around?
2. say I pay off all debt now, and try to get a new credit rating. How soon will my credit be cleared out?
3. And will I be able to get a loan approved right after that?
thanks a lot!

rmurray223

08:24PM | 04/11/03
Member Since: 01/03/03
97 lifetime posts
Jim D. is the man he is 100% right. I'm glad there are a few people on here that know good things

Flipper

06:54PM | 04/16/03
Member Since: 04/01/03
4 lifetime posts
Another reason they want the documentation is to verify that the money is truely a gift, and not a loan that you need to pay back. If it were a loan, it would be considered debt and therefore it might adversely influence your ability to repay the loan you are seeking.

happytrails

04:44PM | 05/16/03
Member Since: 05/15/03
26 lifetime posts
My brother was one of those people that stashed his money at home. I don't know why he did this. We tried to tell him that he could be robbed, burglarized, or the house could burn down. (I think he liked to count it... hahaha) Anyway, when he and his wife went for a mortgage, he had to explain where this money came from. I think he may have had to sign something for the bank too. It was a bit of a hassle but they did lend him the money. (This was only a couple thousand dollars) Everyone involved (the realtor, the banks, etc.) thought it was strange and he finally understands that he should save money in a bank. Now he likes to see his interest building up.
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