Working with Short Sales, in my experience - on a short sale - NO it doesn't make a difference, it will NOT speed up the process, except on the closing end. A short sale will still take 3 - 6 months to get approved.

On REO's since I have only helped buyers, I can't say but I do know that I have had lenders choose my cash offers over a higher FHA loan or any loan.

hope that helps in conjunction with all the other answers. Best of Luck to you.

Yes cash is great.. But on either a short Sale or foreclosure the bank will look at the net proceeds to them. So if you come in 5 or 10% less than other bids you have a chance of losing to a finance offer. Have your agent pull the most recent comps to ensure your offer and list price are in order with recent sales. Some short sale agents will list 20% under market value to draw offers, these often get kicked out or counter offered by the bank.

Brian Frank
Lyon Real Estate
916-402-4697

It is always an advantage to make a cash offer on any property. You do have to provide proof of funds with your offer and it may be to your benefit to provide a higher Earnest Money Deposit to show the seriousness of your offer.

Banks holding a foreclosure prefer the shorter escrow with a cash offer. Short Sale lenders are more likely to approve the short sale because again, the escrow can be shorter.

With multiple offers it is a stronger offer to be reviewed.

Yes. If you do not wish to take a loan but are using your own savings, you will need to provide proof of the funds in your account instead of providing a loan approval letter.

Banks prefer buyers who have cash over financed buyers because they expect fewer failed escrows due to 1. borrower failing to qualify for the loan (usually income lower than originally estimated,) 2. sometimes the house doesn't qualify because of its unsafe or unsound condition or the appraisal comes in too low.

Cash buyers usually do not cancel for low appraisal or condition if they are getting a good enough price.

Gen -

Yes. Cash is "king" in many cases.
With multiple offers, many lenders and investors are looking for all cash offers.

CJ