Will paying cash speed up buying a foreclosed home?
I know it doesn’t work for short sales but is it different with foreclosures?
Foreclosures take so long for a couple of reasons. The main one is that banks are slow to begin with, and getting them to do all of the paperwork and approve the sale is a long process. The prices people are offering as less than what is owed on the houses and officers must approve each sale. They have so many foreclosures in their portfolios right now, and getting the officers to approve every sale is time consuming. They are just swamped. Foreclosures being filed, court cases and auctions, realtors asking to show them, people asking to buy them – they just have so many more of these than they had in the past that most banks can’t keep up.
Paying in cash will shorten the process a little, since they don’t have to pass mortgage approval papers back and forth, but it’s still a long process.
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June 1st, 2010 at 4:17 pm
It increases the odds of the offer being accepted, and also shortens escrow as funding is not an issue.
References :
June 1st, 2010 at 4:47 pm
A little, in that you won’t need to arrange financing…but the seller won’t care.
References :
June 1st, 2010 at 5:19 pm
Foreclosures take so long for a couple of reasons. The main one is that banks are slow to begin with, and getting them to do all of the paperwork and approve the sale is a long process. The prices people are offering as less than what is owed on the houses and officers must approve each sale. They have so many foreclosures in their portfolios right now, and getting the officers to approve every sale is time consuming. They are just swamped. Foreclosures being filed, court cases and auctions, realtors asking to show them, people asking to buy them – they just have so many more of these than they had in the past that most banks can’t keep up.
Paying in cash will shorten the process a little, since they don’t have to pass mortgage approval papers back and forth, but it’s still a long process.
References :