Pre Approval Needed for Cash Offers !!! ????

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Real Estate Agent with Benchmark Residential & Investment Real Estate

I just wanted to share something and see if others are seeing this in other areas. I wrote an offer recently that was a cash offer, and told the broker the proof of funds was on the way. The listing broker told me that the property was bank owned, and that the bank requires a pre approval letter from a specific mortgage company before they will consider the offer.  Now I have seen this where say , a listing owned by bank of america, and they want you to get pre approved with bank of america, that still i dont think is right, but its understandable. Maybe they dont want to accept any offers until they know the buyer is a buyer?  But come on !  Who in their right mind is going to call some MOM and POP mortgage company when they are not using any financing?  It wasnt a large national mortgage company, it was some smaller place I had never heard of, and to make it even more interesting, only one certain mortgage guy at the company!   I pressed the listing broker to explain why that is a rule and that is doesnt have any COMMON SENSE. All they said was thats the rules and they will not review any offers without the pre approval from ABC mortgage.  What is going on in this world?  No wonder things are crazy. The people running things are crazy!  I hope to see some comments on here with anyone else experiencing things such as this.

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Rainmaker
718,104
Elite Home Sales Team
Keller Williams Realty - San Clemente, CA
A Tenacious and Skilled Real Estate Team

B of A and other banks don't make sense the way they approach this problem.  That is why we feel,the people running things are crazy.

Feb 02, 2010 08:50 AM #1
Rainmaker
259,644
Don Eichler
Century 21 Shirley Hooks, Inc. - Granbury, TX

Justin,  WOW! no wonder the real estate business is suffering in certain areas.  This just proves all of the dummies are not in Washington.

Feb 02, 2010 09:31 PM #2
Rainmaker
1,244,474
Evelyn Johnston
Elkhart County Subdivisions, LLC - Elkhart, IN
Super Agent, Probably the Best Agent in the Galaxy

Sounds like B of A to me too!  I am in the process of uploading a cash offer on a short sale with B of A and they are asking me, THE LISTING AGENT, to give them the first 5 digits of the BUYERS social security number.  Like, I am not going to have this...I am going to enter 111-11 or something like that and see if it works.  This is a cash offer to..

Feb 02, 2010 09:59 PM #3
Rainmaker
105,219
Brenda Harmon
Century 21 Beal, Inc College Station, Texas - College Station, TX

Justin,

It is a sad world if CASH is not enough. (With proof of funds of course)

Feb 02, 2010 11:31 PM #4
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Rainer
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Justin Douglass

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