If You're Making A CASH Offer, Why Are You Sending Me a Lender's Letter??

Real Estate Agent with RE/MAX Realty Group

Can someone please explain this to me?  As a listing agent, I have received cash offers.  They are usually way below list because some buyers want you to be so impressed with the fact that they are offering cash.  While a cash offer will do away with the pesky appraisal issues that may come, if that's not a concern, I've never met a seller that wouldn't mind waiting and extra 30 days for over $10,000!

My question to the buyer's agent in a recent transaction is, "If you're making a cash offer, why are you sending me a lender's letter?"  HELLO, Jane??  Because they don't have the cash!  The agent maintains that they do have the cash -- he simply can't get the statements together, the money is coming, the sun's in his eyes, his dog ate his homework.....As I'm reading the lender's letter, I notice that the borrower's name IS NOT A PARTY TO THE CONTRACT.

Is this an ethics violation under, "misrepresenting offers to clients and brokers" or is he just a total knucklehead?

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Comments (3)

Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828

This absolutely irks me.  Twice in the last few months an offer comes in saying cash with a 45 day close and there is a lender letter attached. NO proof of funds.  I scratch my head and say HUH?  Who you trying to BS? 

Oct 24, 2010 07:01 AM
Paul Walker
Equity Fifty Five Realty, LLC - Scott AFB, IL
Scott AFB IL Area Realtor

I would make them put down more earnest money and make it non-refundable! If they have the cash that they say they have that should be easy for them to come up with. 45 days to close? Again they would see a counteroffer for 15-20 days to close! Sounds like the buyer's are trying to look stronger than they really are, and don't understand their need to perform the offer as they are written and accepted.

Oct 24, 2010 07:09 AM
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

This has become an issue in the REO world lately.  Agents and buyers are knowingly submit offers as cash.  After contract acceptance, an addendum surfaces changing the terms to financing.  They never intended to cash for the property.  They were just being deceptive and trying to make their offer look better.

Oct 24, 2010 07:15 AM