Hello Fang and thanks for your note.
As Bill and Katina noted below, the bank's main reason for choosing a specific buyer has more to do with the certainty of a sale than with the price. In other words, a buyer who purchases without a loan (in other words, with all cash) will find that his/her offer, even if lower, will be the one chosen most often by the bank since this buyer will certainly close escrow. On the other hand, a buyer with a loan must first obtain the loan, get the home approved by the lender, and then (often) make repairs necessary to satisfy a lender's conditions. All ot his costs time and creates a contingency that often requires additional negotiation on the part of the bank--something the bank is not happy to do.
While I know this experience has left you frustrated, there are many buying opportunities coming soon as banks release another round of foreclosure properties in the next few months. According to most financial news agencies and analysts, the banks are currently "sitting" on a huge pool of foreclosed properties, and are waiting to clear current inventory before slowly releasing additional homes for sale to the public. There will be other opportunities for you to buy homes in Willow Glen, I'm certain, provided you are prepared to wait a little for the release of these homes.
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA