The answer is very simple, same as you are trying to buy chipper and save money which you can sell and make money. The banks are doing the same and the worse is that they do it with our own money.
every time you put more many in the bank, you give them more power to do what they do. and all boils down to interest. lf you buy a house and get a 30years loan for it: let say $300K with a fix rate of 5%. that means that at the end of the loan you paid the bank ~$280K on interest alone. so if you buy the house cash, the bank lost the opportunity to make $280K plus more. so that is why they outbid you. tho other thing is now they sold the house to someone else (John X) that doesn't have the cash and is willing to pay the interest.
now John bought it and didn't miss a payment for 5 years. now he lost his job and can't keep the house and let it go to foreclosure ( back to the bank)
At 5 years into the loan, John already paid the bank $73.5K on interest alone. and the balance of the house is $275K (foreclosure value?) so the bank can outbid you up to ~$348K (73.5 +275) my guess.
If that happened at 10 years, the interest would be $138.3K and the balance $244K.(foreclosure value?) so the bank can outbid you up to ~$380K (138.3 +244K) my guess.
so either way, if you finish the loan or fail, the bank wins. that is why they are in business.... more
You might be able to get it when it goes to sheriff's sale, depending on where it's at in the process. To do that, you'll need all cash, and won't have the opportunity for a home inspection, etc. That's not the best option for most people, so may have to wait until it comes on the market to purchase it. I can help you find a similiar home that you may love just as much if not more than that one. Contact me, and we can talk about what you're looking for and see what's out there.
Keller Williams Realty