Using A Proof of Funds VOD

Proof of Funds VOD

What is a Proof of Funds VOD?

When applying for a mortgage, auto loan, auto lease, home rental, and so on a lender, mortgage company, private lender, or finance company may require a proof of funds VOD can be issued for account verification. VOD is an acronym for Verification of Deposit. While a VOD Letter may be considered a proof of funds bank letter, it is not intended to be a credit enhancement letter. More specifically it is intended to be used solely for account verification and balance history.

How is a Proof of Funds VOD Letter Issued?

A Proof of Funds VOD are issued by the account holder’s bank or trust usually directly to the account holder by hard copy at the branch counter, by courier, or via fax, and in some cases, but more rarely by email or Key Tested Telex. It is uncommon for a banking institution to issue a VOD through the banking communication protocol known as SWIFT. A SWIFT MT799 or SWIFT MT760  are typically not used for a VOD POF letter.

Unlike the monthly bank account statement account holder’s get monthly or quarterly, the Proof of Funds VOD Letter is not intended to be evidence of transactional history. In other words, it generally will not show purchases, credit card balances held at the bank, or other loans and debts. Neither will it show savings account information that would reflect interest savings.

Purpose of a Proof of Funds VOD

The purpose of the VOD Letter may be to show the financing party’s underwriter credit worthiness, bank proof, or to fulfill a cash reserve requirement. The Verification of Deposit format shows the account holder’s name, account number, date of account opening, current balance, and average balances. This type of verification is most often used in home mortgage, home equity, home leasing and renting, as well as auto financing for auto loans and leases. This places this into more of a consumer banking proof of funds commonly used by the public.

Proof of Funds VOD Can be Similar to a Tear Sheet

In some places a tear sheet may be more commonly asked for than a Proof of Funds VOD. A tear sheet achieves primarily the same purpose as a VOD, showing balances, account holder information, and the like, and is often signed off by the banker doing the verification. In America the VOD format often leaves room for the banker to make remarks or comments on the account. A tear sheet could do the same thing if asked for, but often does not include it into the general format.

Lease Proof of Funds VOD

Balboa Trade provides access to top world money centers where asset holder’s capital can be deposited via loan agreement on your behalf. From these cash accounts you will have non-depletion and non-transactional account ownership enabling the use of a variety of verifications and bank letters to be issued including a proof of funds VOD. These services are made available on a 30 day minimum with extensions up to 12 months or more. Visit the Proof of Funds page for more information, terms, and procedures to engage these cash accounts for lease.

Proceed to Proof of Funds Procedures

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