Hello Smith and thanks for your post.
Unfortunately, there are banks and, more importantly, asset managers that decide what buyers to include and who to exclude. In some cases, a home may be so popular as to command a cash offer, and in other instances, a home may be go searching for buyers. There are also other requirements that may be imposed on a property that, due to is condition, may require only a qualifed cash offer will be accepted.
Whatever the reason, once the bank has decided on "cash buyers" only, you'll be unable as a purchaser with financing to buy the home. Thankfully, the requirements to entertain only cash offers do not happen often, and you can expect that if there is this stipulation, you may not have been able to (or might not even want to) buy the property even if the bank had accepted the loan. At this time, it's best to simply move on to the next home.
If you are not already working with a Realtor, take the time to find someone with REO purchasing experience to assist you. An qualified agent will present to the other listing agent a qualified package that stands the best chance of meeting the needs and requirements of the bank and asset manager both for presentation and fulfillment of stipulations and earnest money deposit.
Grace Morioka, SRES, e-Pro
Area Pro Realty