Home Buying in Stockton>Question Details

Bethanne95376, Home Buyer in Stockton, CA

When would a bank accept a loan offer over a cash offer for the listing price of the home? We offered cash

Asked by Bethanne95376, Stockton, CA Thu Apr 16, 2009

for the listing price and up against someone who offer $2,000 more, but only pre qualified for a loan. The bank has yet to get back to us regarding who got the house. Any ideas what takes so long?

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Hello Bethanne,

Cash is King! That is, if you're at a flea market. A good solid fully approved mortgage loan is just as good as cash in a real estate transaction.

Usually sellers that are banks will give a response in 2 - 5 days. However, it depends on if this is a foreclosure or a Short Sale. If it 's a Short Sale, then it may take several weeks up to several months before the bank will provide an acceptance through the Realtors involved.

What answers and/or advice is your Realtor giving you on this subject?

Keep pressing your agent to get an update.

Good luck,

Randy
1 vote Thank Flag Link Fri Apr 17, 2009
A well qualified buyer with a mortgage contingency is as good as cash. It is still cash at the closing. One of the only positives that a cash buyer has is the opportuinty of a fast closing. As a listing agent I am actually more warry of cash deals because I have no way to verify funds other than a statement from a banker or CPA. If you submitted a cash deal the lender has no way of knowing if you really have the cash without this type of documentation.

As far as the timing of an acceptance it might take 3weeks to several months. I assume that this is a short sale. A straight foreclosure sale actually takes less time. The banks are swamped right now with these deals. In addition, the bank might not accept either offer. The bank will do an appraisal of the home and if the bank doesn't think the offer is reasonable they will take the house into inventory (foreclosure) and either put it on the market themselves or sell it at auction.

Go to our website as we have an information section on short sales and foreclosures.
1 vote Thank Flag Link Thu Apr 16, 2009
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