ECON Plan on Buying a Home? Your Cash is worthless!

[paul bunyan]

Hi Folks:
This is probably old news to most of you but I am going to run with it anyway.

We were trying to move up from ours single wide to a small stick built home.

While working with a mortgage broker, I was asked how I was going to cover the cost difference between my equity and the final closing costs.
I told them I wanted to use my emergency cash, that I had set aside for power disruption or other problems ie Katrina.
Well I was told in no uncertain terms that no bank or closing company would accept cash at the closing. Further more I could not deposit in the bank without providing a letter explaining where the cash came from. They check back 2 months bank statements and look for " abnormal cash deposits " .

So I was looking at a minimum time frame of 2-3 months before I could use my cash!
I asked the mortgage brokers how much cash I could deposit per week, etc and only one told me anything helpful. A national mortgage broker/ banker from the midwest said that I could deposit upto $800.00 in to two accounts per week to "season" the cash and those deposits would be ignored..... So $1600.00 per week.

I then went to a copy I had of the most recent Multiple Listing Service contract and there on the last page the contract asked if I was bring a Certified Check, using electronic transfer or CASH!!!!! to the closing.

These bostiches are running scared of Fincen and the Obamanauts...

Your cash is no good anymore... Feel free to mail it to me...

Thanks and good luck.
PB

 

[imminence]

Your cash needs to be accounted for. The days of saying I had 100 k stashed in my mattress are over! The goal is to prevent tax evasion and money laundering by criminals using cash deposits to disguise the illegal source of their funds. Cash is still king though.

 

[bw]

I asked the mortgage brokers how much cash I could deposit per week, etc and only one told me anything helpful. A national mortgage broker/ banker from the midwest said that I could deposit upto $800.00 in to two accounts per week to "season" the cash and those deposits would be ignored..... So $1600.00 per week.

I am not a lawyer, nor do I play one on TV. That being said, it's my understanding that anything you do to avoid getting in trouble or drawing attention is "structuring". If you deposit $20 per year to avoid getting reported on, that's structuring. The crime of structuring is in your intent, not in specific amounts. So $5000 per week is structuring, $1600 per week is structuring, $.02 per week is structuring. If they want to come after you, all they have to show is that you did whatever you did to avoid getting reported.

 

[Meemur]

Sorry to hear all that.

I've found it useful to find a sharp manager at a credit union and talk about using cash/moving money ahead of time (as in 2 -3 months!).

For example, when I put my house on the market, I made an appointment with the manager and explained that I was selling my house, which happened to be nearby, and she could see the sign when she stepped outside.

I also explained that I was going to be moving to Iowa and would be buying a house there, cash deal.

I made sure that I was clear about all of the procedures, and I followed all of their rules.

NO PROBLEMS!

Did I like all this crap? No. But I kept my opinions to myself, kept a "good attitude," and was able to do what needed to be done.

We no longer have freedom to do what we want when we want. It stinks. But so does messing around homeless.

 

[rafter]

Simple fix...just go buy a cashiers check from a bank. We've done it multiple times when buying real estate.

 

[Sub-Zero]

Simple fix...just go buy a cashiers check from a bank. We've done it multiple times when buying real estate.

Nope. Not likely to work. It all ties into the Anti-money Laundering (AML) guidelines.

 

[Thinwater]

I am not a lawyer, nor do I play one on TV. That being said, it's my understanding that anything you do to avoid getting in trouble or drawing attention is "structuring". If you deposit $20 per year to avoid getting reported on, that's structuring. The crime of structuring is in your intent, not in specific amounts. So $5000 per week is structuring, $1600 per week is structuring, $.02 per week is structuring. If they want to come after you, all they have to show is that you did whatever you did to avoid getting reported.

This is 100% true, AND a felony. Every time I make a deposit of over $10K for my business they do a CTR (Cash transaction report) and ask for my SSN, Name address etc.. before they will accept it. They can do a SAS (Suspicious activity report) when you deposit ANY amount of cash, at their discretion.

 

[Silent Knight]

This is 100% true, AND a felony. Every time I make a deposit of over $10K for my business they do a CTR (Cash transaction report) and ask for my SSN, Name address etc.. before they will accept it. They can do a SAS (Suspicious activity report) when you deposit ANY amount of cash, at their discretion.

And the bullshit is that the feds never have to prove that the funds were tied to illicit activities. You are GUILTY until proven innocent!

 

[Dazed]

"This note is legal tender for all debts, public and private".

 

[Blacknarwhal]

If they want to come after you, all they have to show is that you did whatever you did to avoid getting reported.

Which should be impossible to prove by any reasonable standard. But then all they have to do is keep you so tied up you run out of money and then it's moot.

 

[imminence]

Which should be impossible to prove by any reasonable standard. But then all they have to do is keep you so tied up you run out of money and then it's moot.

Not quite impossible, since about 90% of all US bills have some form of narcotic residue on them. If they want you , they can easily have you!

 

[michaelteever]

"This note is legal tender for all debts, public and private".

Key words in bold...

All depends on debts, not purchases, whole different meaning. Don't particularly have the legal background to understand the difference, but it is what it is...

Michael

 

[poppy]

They do it because people use cash to scam the system. Say you're selling your house to someone for $50K but he doesn't have the 10% down payment. You then make an agreement with him privately that you will tell the bank the selling price is $55.5K and then front him the cash for the down payment and get it back when the loan closes. The bank would think the borrower has the money and make a loan to someone who may be a bad risk. All kinds of tricks using cash like that used to be played.

 

[ivantherussian03]

This is normal procedure . All your resources must be explainable, and or documented.

 

[Bubble Head]

"This note is legal tender for all debts, public and private".

If they will not honor it they need to say "This note is worthless".

 

[RCSAR]

Make a deal with the seller to sell in one ounce gold u.s. coin.

Or buy on a lease purchase with the final purchase price to be one silver dollar.

I have bought many cars for one silver dollar.
I bought my first car a 62 Chevy Impala for 1 silver dollar
Many farmers swap and sold land to each other with the selling price of one silver dollar.

You need a old real estate attorney to handle the ins and outs.
Sometimes the final sale is listed as one silver dollar and other considerations.

Of course I'm am not suggesting you break the law.
I just want you to put yourself in a legal position where the tax laws favor you.

https://upload.wikimedia.org/wikipe...lar.jpg/361px-NNC-US-1921-1$-Peace_dollar.jpg

 

[Hfcomms]

What I do is keep the receipts every time I go to the ATM to take the cash out for savings. If I was to deposit that money back or to make a large downpayment and any questions were asked I would have those receipts to prove that the money came out of my account for cash savings.

 

[foreverkeeps]

Simple fix...just go buy a cashiers check from a bank. We've done it multiple times when buying real estate.

They make you deposit cash in your account before they will give you a cashier's check.

My son had a similar problem trying to get a mortgage at one of the big banks. He walked and went to a credit union and had no problem.

 

[dogmanan]

They make you deposit cash in your account before they will give you a cashier's check.

My son had a similar problem trying to get a mortgage at one of the big banks. He walked and went to a credit union and had no problem.

This, I have not used a bank of any kind in many years, I only use credit unions.

Every body in this country needs to close all bank accounts and change over to credit unions and in MHO that will take care of the bank proublems in this country.

 

[WalknTrot]

You need to get your ducks in a row before you venture into mortgage-land. Then, even after doing all you can, they might find something to trip you up. It's part of the game, and a heck of a learning process.

Agree about Credit Unions. Minnesota has a ton of them and you probably qualify for several, either through your location or employment. I belong to a small one that has known my family for generations. They go out off their way to take care of their people. They were very helpful in getting everything straightened up after my Dad passed away and I had to take over Mom's responsibilities because of her Alzheimer's.

Regroup and try again.

 

[straightstreet]

Several years ago DH and I found a dream house with more room (ours is pretty small). It was a foreclosure with a great price but it wasn't a price we could pay cash for so we started the mortgage process after making an acceptable offer. We thought we could just deposit our cash from our home safe into our bank account but the bank said that cash needed to be shown active in our account for at least 2 months prior. So, we didn't get the house. In the end, it has worked out for the best. Our current home will be paid off this year. Hallelujah thank you Jesus! It may be small but its ours

ETA: My DM paid cash (cashiers check) for her home in 2011 or 2012? I just happened to think of that. I had forgot about it. I went with her to her closing. There wasn't any issues. They were glad to have that check from her.

 

[FarmerJohn]

This is 100% true, AND a felony. Every time I make a deposit of over $10K for my business they do a CTR (Cash transaction report) and ask for my SSN, Name address etc.. before they will accept it. They can do a SAS (Suspicious activity report) when you deposit ANY amount of cash, at their discretion.

Go ahead and provide them the letter that they are asking for. They will then do a CTR and possibly the SAS as well but by then your cash is in your account and you can do with it whatever you want.

 

[RCSAR]

Can't you just load cash on a prepaid card and use that?

 

[Jonas Parker]

That stash of FRNs under the mattress won't work any more. A stash of 1 ozt of gold coins may be a better bet...

 

[rafter]

They make you deposit cash in your account before they will give you a cashier's check.

My son had a similar problem trying to get a mortgage at one of the big banks. He walked and went to a credit union and had no problem.

No they don't. We walked into a bank that wasn't even our bank with cash and bought a cashiers check a year and a half ago to close on our house.

 

[mortgageboss]

I am sorry you are having these issues.

Unseasoned cash hasn't been an acceptable source of cash to close for years. Its a Fannie Mae, Freddie Mac, Hud guideline. Back in the day, low doc, no doc loans, or stated income/stated asset loans were available and that is how people with mattress money could use it and not have to deposit it 2 months ahead of time.

Now if you had 100 percent of the purchase price in cash, it wouldn't matter because you would not be seeking a mortgage.

A wise move for those seeking to buy a house that will need a mortgage is to meet with your lender BEFORE you go out an make offers to see if there are any problems with your situation. A good mortgage lender can advise you ahead of time to get ready for a home purchase with a mortgage.

You might have to just wait until you have 2 months bank statements that show you have the money. Maybe you get an extension on the contract?

 

[paul bunyan]

Thanks Guys for all the great advise and personal experiences.

No pressure to close yet. But we have some prospective buyers, per the local credit union.

Sellers remorse anyone?

PB

 

[amarilla]

Somewhat related. When I tried to buy a car and use the cashier's check it had to wait two weeks to clear because apparently there is a lot of fraud there. You might want to ask about their wait times for cashier's checks.

A

 

[China Connection]

In Australia cash is also useless to buy a property. A bank has to be involved in the property settlement process. Been there done that.

 

[foreverkeeps]

No they don't. We walked into a bank that wasn't even our bank with cash and bought a cashiers check a year and a half ago to close on our house.

Anti-money laundering laws are changing. I'll try it at another bank some time. Our bank makes us deposit the amount if it is more than $500 or $600.

 

[RCSAR]

Anti-money laundering laws are changing. I'll try it at another bank some time. Our bank makes us deposit the amount if it is more than $500 or $600.

They just want to cycle through the books to show it as a deposit so they can lend more money.

Seems to me.

 

[Sub-Zero]

What I do is keep the receipts every time I go to the ATM to take the cash out for savings. If I was to deposit that money back or to make a large downpayment and any questions were asked I would have those receipts to prove that the money came out of my account for cash savings.

I am doubtful that would satisfy the AML (Anti-money Laundering) requirements.

 

[TerryK]

This, I have not used a bank of any kind in many years, I only use credit unions.

Every body in this country needs to close all bank accounts and change over to credit unions and in MHO that will take care of the bank proublems in this country.

Credit Unions operate under the same laws and rules that banks do when it comes to moving large amounts of money.
They are just friendlier and provide better service than banks, because for the most part, they haven't forgotten that the customers they serve are the reason they are there.
I have a big online bank and a local credit union. To the big online bank I am just another account number. My credit union of almost 40 years greets me by name every time I come in and always asks if there is anything else they can help me with.

 

[NC Susan]

Btt.
Lots of new bank laws 2016 i wasnt aware of ...!!

http://www.timebomb2000.com/vb/show...Cash-in-the-Bank&highlight=Safety+deposit+box


http://www.timebomb2000.com/vb/show...sh-Policies-quot&highlight=Safety+deposit+box

http://www.timebomb2000.com/vb/showthread.php?497042-Safety-Deposit-Boxes-(-not-a-good-idea-)

 

[cjoi]

Maybe try wrapping the cash in plastic wrap and stack it on a wooden pallet. Worked for Obama and no one even blinks. Jus' sayin'...

 

[David Nettleton]

Your cash needs to be accounted for. The days of saying I had 100 k stashed in my mattress are over! The goal is to prevent tax evasion and money laundering by criminals using cash deposits to disguise the illegal source of their funds. Cash is still king though.

The purpose is to get you to keep your money in a place where "they"can get/control it.

 

[WildDaisy]

Hi Folks:
This is probably old news to most of you but I am going to run with it anyway.

We were trying to move up from ours single wide to a small stick built home.

While working with a mortgage broker, I was asked how I was going to cover the cost difference between my equity and the final closing costs.
I told them I wanted to use my emergency cash, that I had set aside for power disruption or other problems ie Katrina.
Well I was told in no uncertain terms that no bank or closing company would accept cash at the closing. Further more I could not deposit in the bank without providing a letter explaining where the cash came from. They check back 2 months bank statements and look for " abnormal cash deposits " .

So I was looking at a minimum time frame of 2-3 months before I could use my cash!
I asked the mortgage brokers how much cash I could deposit per week, etc and only one told me anything helpful. A national mortgage broker/ banker from the midwest said that I could deposit upto $800.00 in to two accounts per week to "season" the cash and those deposits would be ignored..... So $1600.00 per week.

I then went to a copy I had of the most recent Multiple Listing Service contract and there on the last page the contract asked if I was bring a Certified Check, using electronic transfer or CASH!!!!! to the closing.

These bostiches are running scared of Fincen and the Obamanauts...

Your cash is no good anymore... Feel free to mail it to me...

Thanks and good luck.
PB

We just purchased our home with cash. The bank was eager to work with us because the home was a foreclosure.

 

[NC Susan]

We just purchased our home with cash. The bank was eager to work with us because the home was a foreclosure.

Do you mean paper dollars ?

Or cashier checks

 

[paul bunyan]

I am not a lawyer, nor do I play one on TV. That being said, it's my understanding that anything you do to avoid getting in trouble or drawing attention is "structuring". If you deposit $20 per year to avoid getting reported on, that's structuring. The crime of structuring is in your intent, not in specific amounts. So $5000 per week is structuring, $1600 per week is structuring, $.02 per week is structuring. If they want to come after you, all they have to show is that you did whatever you did to avoid getting reported.

You are so right...we are all Felons multiple times over.

The ruling class, of course, can send Super Classified emails via open channels ( Hitlery ) and only get a wrist slap... bad bad girl, no dessert for you!

PB

 

[pinkelsteinsmom]

LOL! Amerika, land of the fee and home of the slave. How's that freedom working out for you guy's?

I note the plethora of threads on topic's like this one where the discussion revolves around those who know the Purported laws governing these unconstitutional dictates and those trying to find a way to work around them.

Where is the outrage and plans to make sure this crap is STOPPED?!

How far down to the floor will we allow the shackles to be tightened?