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by sedachv 1833 days ago
> A friend who works in real estate foreclosures told me that everyone he works with is using stable coins now for this very reason.

How exactly does that work? Have trustees started accepting stablecoins for deposits? Are there auctions where you can pay with stablecoins? Or is it just for payments from foreclosure buyers to their representatives who make bids on the buyers' behalf?
1 comments
hanklazard 1832 days ago
I believe they were just using it as a method to prove available funds while waiting on the traditional banks / lawyers to do their thing. The more interesting part to me was that he said it was guys in their late 50's / early 60's with backgrounds in construction learning how to use crypto for these foreclosure auctions.
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sedachv 1832 days ago
> I believe they were just using it as a method to prove available funds while waiting on the traditional banks / lawyers to do their thing.

That sounds really vague. A proof of funds letter has nothing to do with money transfers. You can walk into a bank branch and get a signed proof of funds letter right there. The people actually selling the property that require a proof of funds letter are going to be either a trustee or court auction (foreclosure), or when making an offer to a bank for an REO/bank-owned property (what some people mistakenly call foreclosures).

It would be really interesting if those parties started accepting stablecoin signed messages as proof of funds letters, but I do not know of any that do. The real interesting part in that scenario would have nothing to do with cryptocurrencies - it would mean the widespread acceptance of public key cryptography for legal and financial documents and transactions. Once that happens there would be even less reason for the really shitty distributed database part of cryptocurrencies anymore. Not a popular opinion, but one I have held for a long time, and if you think the system through it is hard not to arrive at the same conclusion. "You mean this all could be done with PGP in the 1990s?"

What it sounds like is happening is that third-party companies involved in foreclosure buying are accepting stablecoin signed messages to act as financing intermediaries. That really does not mean a lot - there are even financing companies out there specializing in supplying "instant" proof of funds letters to house flippers that are really conditional loan offers.

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