My firm represents many banks and government agencies selling their REO (Real Estate Owned) inventory. I hear often from investors that “Cash is King” when submitting offers on these homes. This is completely false and here’s why; banks and government agencies look at their net price not the type of financing. I have submitted offers on REO’s both cash and financing and they are treated equally. When making a purchase for cash the bank will require a proof of funds, when making an offer with financing the bank will require an approval letter. The approval letter should state: maximum purchase price, type of loan, term, expiration, and any outstanding conditions. So, when you hear “regular” Realtors  talk about cash offers being stronger you’ll know this is a fallacy.  Lenders at Chase R.E. are experienced in drafting bid winning approval letters.

Tags: chase foreclosure, christian chase, foreclosure financing

This entry was posted on Saturday, September 5th, 2009 at 7:17 pm and is filed under Financing . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.