REO at 53K. Which would be more attractive to the bank...56K financed or 48K cash?

Asked by Kleenex, 32218 Fri Mar 2, 2012

Help the community by answering this question:

+ web reference
Web reference:


Kevin Clouti…, Agent, Cape Coral, FL
Fri Mar 2, 2012
Great question!
What does your buyer broker tell you?

1 vote
Alma Kee, Agent, Tampa, FL
Sat Mar 3, 2012
It may be costly for you to "finance" $56k because it's a small loan amount.

Is the asking price $56k? If so, do not base your offer on the "asking" price.

Depending on the area, REOs will sell above asking to an ALL CASH offer so make sure to have your Realtor help you analyze the comps to arrive at a current market value "as is".

Never, ever put more than 7 days inspection on an REO that may instantly nix your offer. I suggest no more than 5 days on an REO. If you can't get it inspected in that time frame then you shouldn't be looking at REOs.

Good luck!
All the best,
Alma Rose Kee PA
0 votes
Corey Buck M…, Agent, Jacksonville, FL
Sat Mar 3, 2012
If you have the cash available go in with a cash offer and look to strengthen that offer with additional concessions. Do some initial due diligence and determine a comfort level in drafting an 'as-is' offer. Even with an 'as-is' you retain the right to a inspection, but limit the timeframe from 10 days down to 5 or 3. That way if you discover a problem and back out it is less time off the market from the Banks point of view. If you are concerned tying up funding, check with your lender ahead of time and determine the hold time before you can do a cash out re-fi. I've had clients where it's a 6 month hold, but check to assure based on your situation.

If you need any assistance, please don't hesitate to contact me.
0 votes
John Breen, Agent, Jacksonville, FL
Fri Mar 2, 2012
56k financed is 56k in the Sellers pocket at close. 48k is 48k in the Sellers pocket. If someone offered you 56k or 48k what would your choice be. Cash buyers do their due diligence just like buyers that finance. If anything cash purchase means less closing costs. Good Luck with your purchase. Hope this helps.
0 votes
Steve Henric…, Agent, Jacksonville, FL
Fri Mar 2, 2012
Good question. I agree with Howard but would like to add a few thoughts:
1) you need to finance a property purchase in the way that makes the most sense for you, but you already know that;
2) if the property does NOT have problems (which an agent might be able to tell you even before seeing it in person, and you might be able to see immediately when you view it) such as location issues, condo community issues, big-ticket repairs such as a roof or termite damage, missing flooring or AC or such, then my answer would be the bank wants to maximize the bottom line;
3) time on the market or previous contracts that have fallen apart might cause the bank's asset manager to prefer cash even more.
--Steve Henrickson
Web Reference:
0 votes
Howard Flasc…, Agent, St Johns, FL
Fri Mar 2, 2012
Can never know for sure but Cash means less contingencies and reasons for it to fall through. If you need help organizing a strong offer let me know :)
Web Reference:
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more