Cash buyers will beat an offer involving financing about every time, even if the offer is higher than a cash offer. The banks have already ordered an appraisal so they know if offers are high or low and that's how they know if a financing offer requiring an appraisal is higher than appraised value. They know if your higher offer is inflated just to get accepted.
They can close a cash transaction quickly, days rather than weeks, and there is typically no appraisal that could affect sale price. Banks, as with any seller, can reject appraisal value and put property back on market seeking a cash buyer. It happens.
REO's are tough. Buyers tend to get very frustrated when they keep losing out to cash buyers. There are many variables in the home purchasing process. Don't give up hope, just make sure you're receiving the proper info and guidance before continuing your home search. Best wishes for success! :)
REOs usually get many offers as they are for the most part low priced real estate. You have to be sure that you are giving your best offer to get their attention, even then you will suffer multiple rejections.
This market is very competitive right now. Multiple offers are becoming more the norm vs an exception. There were probably many offers and the bank (seller) simply chose not only the highest bid but more than likely also considered the terms, i.e. cash vs financed.
It happens, move on and find something else rather than upsetting yourself.
Obviously, you are a schill whose purpose is to promote the cartoon, which is alright by me. (cartoon had 201 views when I looked. do you think the low count is a coincidence?)
The cartoon, which is NOT where I normally turn to get guidance based on facts, is very entertaining and worthy of ackknowledging for its entertainment value and creativity. Exactly what one would expect on Trulia...ENTERTAINMENT!
However, it is the classic 'truth-married-to-a-lie' situation. There is sufficient reality to make it beleivable but under the hood the premise falls apart.
Two weeks ago I DID meet with Chase bank, with a member of their second tier staff that oversees their REO and morgage efforts. Things are a mess a Chase. However, the cartoon did correctly identfiy the REO agent is being the manipulator of the outcome. And the cartooon does correctly identify the 'Big Banks' as being exempt from nearly all accountablity.
If only they had a cartoon providing instruction for packing a parachute. Who could you blame after the splat?
You many have to put in several offers on different properties before you land one. The market is very aggressive and generating multiple offers on properties again.
The REO site, http://www.homepath.com/, explains the process.
Best of luck!
Sohail A. Salahuddin | Founder and Team Leader
Innovative Property Consultants Group | Sales and Leasing
Jameson Sothebyâ€™s International Realty
425 W. North Ave. | Chicago, IL 60610 â€¨
O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030
"Extraordinary Service For Extraordinary Lives"
HUD and Fannie mae foreclosure properties are done through an online bidding system, so there is very little chance of any kind of problem. It is frustrating. This is a frustrating market. REO's are often difficult to deal with, but with the help of an honest agent, you can get the home you want and feel good about it. You just need to keep plugging - buying in this market is a good idea and worthwhile and sometimes worthwhile things are not always easy. Good luck.