I get no FHA - but why would a seller care if 10%, 20%, or 25%?
If an all-cash offer didn't come in and wipe out all other offers on a house, why would a seller (including, but not limited to banks, so if you have a different motive for each, I'd love to hear) care if an offer was 10, 20 or 25% down on a house? If someone is pre-approved equal to or more than offer made on the house, what difference does it make to the seller? But apparently they just did, so I'm curious what I'm not considering why. If you are pre-approved, you are pre-approved. Are they that afraid that for conforming loans, 10%, good credit, stable jobs won't be enough to get financing? by bpenn_897_261 from Gaffney, South Carolina. Sep 23rd 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
History is the best example... I take it your looking at an REO, (lender owned property), and in this situation, they have had many deals fall through. Credit, surprisingly, is not always the reason. The appraisal could be low, or there could be conditions on the appraisal that would need to be corrected before a lender will lend, and it's possible that the seller , bank, does not want to do any repairs.. Also, they believe that Cash Is King. Cash transactions don't require appraisals, and can usually close quicker.. This is assuming the deal is on the up and up... There has been a 10 fold increase in loan fraud, where the seller's agent is working behind the scenes with hand picked investors who will only submit their investor offers to the seller... higher offers are never seen by the seller and the seller accepts what he believes is the best offer. You could demand a receipt from the seller stating that they did receive your offer, but this too can be forged... sadly, this is the lending environment we are in right now.. WilliamAcres.com
Ask our community a question.
Get an answer
Related Questions
