Home Buying in Naples>Question Details

Kizzylove, Home Buyer in Naples, FL

Will paying cash speed up a short sale?

Asked by Kizzylove, Naples, FL Sun Apr 11, 2010

The home has been bank approved and the seller accepted my full price cash offer, is the bank morel likely to give me the house or is there still a chance that might not accept it?

Help the community by answering this question:


While under normal circumstances a CASH offer with no contingencies might get the most attention. The banks are not on your side; you would be better to move onto another property without all the strings and delays that a Short Sale or Forclosure have.

Good Luck to you.
0 votes Thank Flag Link Wed Mar 9, 2011
Most lenders are interested in selling at a price that will limit their losses, rather than selling fast. Although cash is always good, you'll remain at the mercy of the lender for final approval.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Sun Aug 1, 2010
Paying cash for a short sale absolutely gets the attention of the lenders involved, is it a guarantee probably not but a good way to start. I closed a short sale just recently in 14 days it was cash, I asked for 10 day close but 14 was great. Even though the Sellers accepted your offer you are still at the beck and call of the lenders who may come back and ask for more money, stay tuned for the amendment. My opinion, not all short sales are the bargain they appear to be be open minded for the best value. Contact me when you are ready to get started (239) 564-0384.
0 votes Thank Flag Link Tue Apr 20, 2010
Paying cash may speed up closing after bank approval of the sale but rarely will effect the approval if you have a valid qualified loan pre approval. The only case I have seen a cash offer be an advantage is in the case of properties that the short sale evaluator believes the property may not appraise or meet lender conditions.

Many "approved short sales" were approved with a buyer that backed ouyt and may or may not be able to be closed by you as a new buyer. Each case is different.

The main thing is to work with a Reltor who has experieince in closing these deals and have an attorney review all documents to insure that you achieve clean title with no forward risk.

If you need assistance, please contact me.


Ken Lowe - Realtor
Prudential Florida Realty

Web Reference: http://www.Ken-Lowe.com
0 votes Thank Flag Link Mon Apr 12, 2010
No. The bank does not care if it is cash or a qualified loan. In a short sale, the condition of the seller is more important. Their burden is to prove they have to do it. That is done by a hardship letter, tax records and full disclosure of current expenses and those expenses over the past 3 months. Cash does make a difference in foreclosures, however, that was not the questions.

Hope this helps.

Debbie Albert, PA
Coldwell Banker Residential
0 votes Thank Flag Link Mon Apr 12, 2010
Often "approved short sale" means that the lender has reviewed the paperwork submitted by the seller, which generally indicates that there is financial hardship.
It doesn't necessarily mean that any price has been approved.
Once there is an offer, a BPO is done by a contracted Realtor ( I have done these for a variety of lenders)
to determine market value. This is to evaluate the offering price. If the price is way below value, the lender may ask for more.
Cash is always preferred by the lender, since there are no financing contingencies.
Will it speed up the sale? Maybe.

But my question to you is, are you working with a Realtor? Your Realtor who may have short sales experience should be providing you this information.
Good luck!

Mary Horesco
Downing- Frye Realty, Inc.
"Voted #1 Seven Years in a Row by Naples Daily News Readers"
Web Reference: http://www.maryhoresco.com
0 votes Thank Flag Link Sun Apr 11, 2010

When you say "bank approved" I am guessing you mean the list price was
approved by the bank - an "Approved Short Sale". If that is the case, your offer
will get through the process faster and bank acceptance is more assured.
Your cash offer will also save you time because you do not have a lender
putting you through all their hoops, including an FHA audit.

Be aware, however, that if it is not a fully approved short sale, the bank may come back and ask for more
money. Bank acceptance hinges on their net from your offer. I think chances are in your favor.

Good Luck,

Assoc Broker
Indianapolis area
0 votes Thank Flag Link Sun Apr 11, 2010
It will certainly speed up the time between acceptance and closing. It probably will not speed up the time between offer and acceptance. The two biggest factors in getting acceptance from the bank is how good the offer is and the financial situation of the Seller. The bank only cares about "net". The fact that you are making a cash offer will help make your offer better, but the bank still has to go through their process of evaluating and negotiating and nothing is going to speed that up.
0 votes Thank Flag Link Sun Apr 11, 2010
Cash offer certainly gets attention of the asset manager. Best keep looking till you hear a response back from the lender.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Apr 11, 2010
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