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Answers (6)
- Heather Kelley, "HeatherKelleyRE"
- Contributions:15
I've had experience with a short sale of the seller passing over a higher cash offer in favor of a lower offer that required no inspection - so I suppose it depends on the circumstances. It seems there was an issue with the house. With foreclosures, depending on the time of year (the end of the fiscal year especially) banks definitely prefer cash. It's quick. Otherwise, it may depend upon the qualifications of the buyer and the amount offered.
- Ed McKee, "OregonMortgage"
- Contributions:17
I agree with Melina
Though there many variables most, but not all, Banks prefer cash. I have had different Banks prefer to hold on to a property hoping for a higher price.
- William Metzker, "MrLiam"
- Contributions:209
The quick answer is no. The bank (or, more likely, the servicer) will choose the offer that will result in the greatest return. Some of them even require the party making the offer to pre-qualify through it even if the buyer us using a different lender. Therefore, a cash offer is only a better one if all the offers are for the same amount of money, close at the same time, etc. As far as the servicer is concerned, it gets cash anyway.
- Michael Babbitt, "MBabbitt"
- Contributions:11
If it is a bank owned property they typically prefer cash offers,even if they net less. This is because there is less chance of a sale fail due to inspection or finance issues. However on a short sale, it usually is a first come first serve basis.
- Melina Tomson, "Melina Tomson"
- Contributions:290
Most agents that do short sales have the seller execute one offer and send it to the bank. The seller is the legal owner and they will pick the offer that they think they have the best chance of having the bank accept. The sellers will look at the net for the bank so there are other factors like closing costs and such. All things being equal, cash wins though.
- Thesa Chambers, "Thesa Chambers"
- Contributions:65
First of all on a short sale - the seller is still mostly in control. The seller can only sell the house once obviously - so from the story you have put up here - I would suspect that there is an offer to the bank already - and a back up offer - so you would be the third in line and you would typically go to the bank one at a time - buyers often bail on these transactions - and with 2 offers already on the home and you being willing to put you cash on the line makes me wonder - is the listing price a price that the bank will even agree to - if the broker price opinions do not come in as low as the listing price the bank will tell the seller that they will not agree which will mean the seller will have to counter the buyers - if you love the house that much - you may find that you stand a chance that the other two buyers will bail either before the bank responds or because the bank won't settle for the current listing price - good luck
Do banks in short sale situations look more favorably on a 100% cash offer as opposed to financing?
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