Our standard Florida Purchase and Sale Agreement has an option for cash sales, that says, "Buyer will pay cash or may obtain a loan for the purchase of the property. There is no financing contingency to Buyer's obligation to close.".
I have a customer who is using a hard money lender and does not need a finance contingency, but is also still 'financing' the purchase. Normally this would not be an issue, but it appears that the banks don't like this. When we try to purchase a bank owned property the bank wants only a POF, not a letter from a lender (basically a pre-approval).
In some respects I do understand their position, but if the buyer is willing to loose their deposit money they must be fairly certain that they can close the deal. We finally got the lender to reword the pre-approval letter, so maybe this will work now!
This has been a real headache for us and I know there isn't much we can do, but thought it might be good for others to know about it.
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