Is the lender discriminating on the buyer because they are paying cash?

By
Real Estate Agent with Coldwell Banker CA RE License 01117012

 

 

 Asking $418,000, sold for $430,000 on March 10, 2005

2 bedrooms, 2 baths, condo, updated kitchen!

 

 

 

 

THREE YEARS, 2 months LATER ! May 2008

For Sale: Asking $269,900. same condo, 2 bedrooms, 2 baths, no kitchen.  For sale by bank (REO).

The listing says:

Buyers' earnest money deposit shall be 3% of asking or $1000 whichever is higher (for purchase w/ loans). For Cash Buyers, deposit shall be 10% of asking price.

You can't even get a loan in this condition. And you have not seen the rest of the approx. 1037 sq. ft. living space yet.

  I don't understand the bank's logic behind this one. Are they discriminating against cash buyers just because they are paying cash? 

What's your opinion?

 

Comments (3)

Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Goodness, that poor house. will be interested incoming back and seeing what opinions you get.

May 24, 2008 06:27 PM
Terry Kuehn
Family Real Estate Services, Inc. - Tacoma, WA
Self-Directed Roth IRA Associate

I'd say there is probably some bad communication going on....

May 24, 2008 06:50 PM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

I think the bank is tired of getting offers on homes, and having them fall through at the last minute and their only recourse is to recoup $1000.  A 10% good faith deposit buyer will be a serious buyer who has done his/her homework on the property and not made an impulsive decision.

 

May 25, 2008 02:46 AM