What are banks looking for when deciding on offers on a foreclosure?

help banks
justwondering asked:



An offer made by loan.

An offer in cash or would they rather have an offer in cash or would they rather have higher offer made by loan.


Tyler

Renting & Real Estate, May 02, 2009

3 Responses

  1. teran_realtor
    5 May 2009 1:10 am

    Higher offer.

  2. codysdoor
    6 May 2009 1:29 pm

    If you get a loan, you’re still paying them cash (or rather your lender is). So to the bank, there isn’t much difference. The only advantage if you having cash vs. a loan is a slightly faster closing and less chance that it falls out of escrow.

    So, two offers of the same amount, they’ll go with the person ready to close with cash. However if the difference is more than minimal, they’ll pick the higher offer with traditional financing.

  3. Landlord
    7 May 2009 4:57 am

    Highest and best. More cash trumps higher offer, if they are within a few percentage points of each other. Higher credit trumps lower credit too. They also prefer buyers who were pre-approved by them. However, it is illegal for them to require you finance thru them.