Do banks prefer to receive cash or have the person to take mortgage loan from them?

I put a bid on a house yesterday but this morning I found out that there were 7 other offers were put on this bank owned property. Since there are too many offers, the bank decided to close the deal today.

My agent just called and she said I am one of the 2 that the bank is interested in selling the house to. I also found out that the other person are willing to pay cash for this property. I live in CA, I have no idea how can this person come out with $350K cash??? Just curious and mad..

Anywho.. I%26#039;m just wondering if anyone knows if the bank would choose the other person over me? FYI I am pre-approved with the same lender who owns that very property.

So it%26#039;s a verdict between me - who will borrow money from the same bank that is selling the house and.. that person who has cash. I would think the bank wants my interest money over the course of this coming 30 years??

Anyone can answer???? Thanks!

Do banks prefer to receive cash or have the person to take mortgage loan from them?business loan

They want the highest price. Whoever is responsible for selling this house doesn%26#039;t care about the profit potential over 30 years, they just want it off of the books. Even if the cash to buy it comes from their bank, they will be paid in a lump sum to remove this property from their books.

The cash buyer can probably close faster and that will be a consideration. The cash buyer doesn%26#039;t need mortgage approval and that will be a consideration.

Look at it from their point of view. I can have $350k in cash today or I can take a chance that you can get financing in a few weeks at $355k. I would take the fast $350k any day.

I hope it works out for you. Good luck!

Do banks prefer to receive cash or have the person to take mortgage loan from them?

loan

The other people most likely put a loan on another property in order to have the cash available to buy this house. Depending on what the other people put for a closing date and what you put, that might be a deciding factor and what the other people bid. If they are higher than you then the bank might take the other deal. it could go either way because who knows what there bid is|||How much are you putting down?

These days, if I was a bank I would take the money whenever i can get it. The potential to make more money over the life of the loan is great but there are always people to loan to but not many people are handing over $350,000 every day. They probably did take out a loan just not with that bank.|||When buying foreclosures this sort of thing happens. Just be patient. The present market is such that if it looks like a good deal today, it will be a better deal tomorrow.

Since you have just 5% to put down, look into VA/FHA. FHA has a section 203(k) rehab mortgage that is tailor made for buying a foreclosure and fixing it up.

Too bad you aren%26#039;t in Florida, I could fix you up with 100% financing programs

http://www.atlanticeloan.com/pages/100-p...

The 100% programs I have are great for buying and fixing up foreclosures.

Good Luck

Charlie Camp

Atlantic Mortgage|||Actually depends on how the bank feels they can keep you as a customer. Things to look at? Is there a prepayment penalty on your loan. If so for how long? 2 or 3 year prepayment penalty than the bank will only recover half of the 20 k in between cash and financed offer. Look at inventory in your area. If there more homes in your area with same bed/baths/acre than possibly the cash would be a good deal. Cash can close faster than financed. Yet, financed can close in under 30 days as well.

Overall dont get into a bidding war. Many sellers are low balling home prices to get into a bidding war with buyers and making them pay either at retail or comparable for todays market for the home. Work with your REALTOR and figure out whether this house is a good deal compared to the surrounding homes. Now, if you really want the house because of demographics and you really like the house than ask your REALTOR what is a fair market asking price. He/She should be able to tell you what is comparable price to housing around the area.

Hope this helps and dont get into a bidding war. Not worth it into todays market.