Unfortunately the seller did nothing illegal. The seller has the right to determine which offer is superior based on whatever criteria they choose. Distressed sellers (bank owned or short sales) generally prefer cash because there is no contingency for closing the transaction. The bank is looking to liquidate the home as quickly as possible. They will take a lower price for cash vs financing. Also in many cases the home will not qualify for financing because of their condition. Although they should say "cash only" on the listing, there is nothing that requires them do so.
If you were using an agent to help you in this transaction they should be able to explain the basics of each type of sale and what to expect. If you were doing this on your own you may want to consider talking with a broker to better understand what potential outcomes lie ahead. There is no cost to you to use an agent to represent you in the transaction and the advice may lead to a better overall price for you.
Broker Baird & Warner
Forget a moment that it is a bank you were dealing with as it was I assume a Foreclosure, when the bank was the legal owner of the property at this point....
Any Seller, can accept or refuse any offer, it is their house to sell, they like one offer better because the
buyer has a large down payment and and higher earnest money amount, or they like the other buyer's offer better because the offer has a higher purchase price, or even better the next offer will close faster, or they do not have anything to sell, or imagine the seller does not yet know where they are moving to themselves so they prefer the offer that closes latest, because it will give them more time to look for their next home .... so you see there are many reasons, for a seller in general....
As far as the bank's decision goes which offer to accept, and probably it was not just your offer and
the one they accepted, may be there were others as well - just think about if the bank can close quickly and get the house off their inventory (Banks are not in the home buying and selling business, they are in the money business) they may go for that, because the cash offer can close as soon as
the title, and survey can be done etc. and they close, with an offer that requires to apply for a loan
and then wait until all paperwork is presented and that bank finally issues the loan commitment, means waiting for the bank..... So this may just be an explanation why what happened happened...
As a buyer making an offer on a foreclosure or bank owned property is always as bit of a waiting game
and once the bank makes up its mind, that's it....
I feel bad that you think that this was your dream house, I always tell my clients, there is always another home coming on the market, and chances are that it may just be even better than that
first dream house, and could become your final real dream house. Just take a deep breath and
look for the next home that fits your needs and pocket book. Are you working with a Realtor, you may
want to work with a buyers agent, there will be no cost to you in most cases, if and when the property
is listed by another brokerage and you get a lot of guidance..... I wish you much luck, if you need
a recommendation or a good Realtor in your area, let me know.
Good Luck to you
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)
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Agents US & world wide properties. French, German, some Spanish &more EdithSellsHomes@atproperties.com or EdithSellsHomes@gmail.com
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