With bank owned homes the faster they can close the better. And a cash sale can close in a matter of weeks, while an offer with a loan contingency can take upwards of two months to close. And since there is no appraisal required with a cash sale the sale won't be derailed by a low appraisal. Plus with FHA/VA loans the appraisal process also involves an inspection which can slow or kill a sale if there are issues.
If you're considering a cash offer, make sure you can provide proof of funds with your offer or the listing agent won't accept the offer. A proof of funds can be a letter from a lender or a recent copy of a bank statement (with account numbers blacked out) showing you have at least 100 percent of the money in the bank to make the purchase.
Yes indeed, the banks favor a cash offer as then there is no mortgage contingency nor any buyer's appraisal involved. It's one reason why you see so many investors scooping up foreclosures right as they hit the market.
Cash is king!
Good luck to you!
Prudential Connecticut Realty