Anyone ever hear of this?

i'm confused...if it's an ALL CASH deal, then why would getting a mortgage be involved??
what am I missing?

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Posted by Gonnacatchapeacock

Buying a house is CASH? does that buyer immediately have the upper hand to anyone going through the banks?

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Yup... it happens. A cash sale can close in 2-3 weeks. Destroys any offer from somebody with a mortgage.

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Posted by MrsERod

i'm confused...if it's an ALL CASH deal, then why would getting a mortgage be involved??
what am I missing?

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I was just thinking the same thing....

hmmmm....

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Posted by MrsERod

i'm confused...if it's an ALL CASH deal, then why would getting a mortgage be involved??
what am I missing?

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LOL... cause if they do that... the buyer is lying just to make their offer look better.


If somebody came up to me and offered an all cash deal... I accepted the offer and they then decided to go back on their word and went for a mortgage... i'd drop them like a bad habit.

Any cash deal offer that comes to me gets it written into the contract so they can't pull any funny stuff.

This is whats confusing me:

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Posted by skew

EXACTLY. we offered lower than asking, ALL CASH, 10% at contract and flexible terms. not sure how many other offers there were, but i guess ours was the most attractive. the reason why sellers prefer an all cash buyer is because it is a guaranteed sale even if the buyers are denied a mortgage.

we are mortgaging 80%. even if you do offer ALL CASH all that matters in the end is that the seller is paid and not who they are paid by.

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how can you consider it all cash, if you are getting a mortgage for 80% of the deal???

We lost a greta house in Huntington Village to a cash buyer. At least that's what the selling agent says.

I have never heard of offering CASH when you don't actually have it. Very interesting. So what happens if they want to close in 2-3 weeks and you cannot get the mortgage and lender to give you the money within that time frame? Also when they get paid if it was from a 'cash' deal it would be a certified bank check from your account. The check will be coming from the lender.

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Posted by MrsERod

This is whats confusing me:

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Posted by skew

EXACTLY. we offered lower than asking, ALL CASH, 10% at contract and flexible terms. not sure how many other offers there were, but i guess ours was the most attractive. the reason why sellers prefer an all cash buyer is because it is a guaranteed sale even if the buyers are denied a mortgage.

we are mortgaging 80%. even if you do offer ALL CASH all that matters in the end is that the seller is paid and not who they are paid by.

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how can you consider it all cash, if you are getting a mortgage for 80% of the deal???

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it's NOT ALL CASH but that is how we presented our offer. we took a chance and i admit it was risky and dishonest. we spoke to our attorney beforehand and he said that it is legal. HOWEVER if we were not appoved for the mortgage in the amont that we wanted we would have to purchase regardless.

we had the opportunity to meet the homeowner when we first viewed the house and asked when she is planning to close on the house she is buying. at that point we KNEW we had over 60 days and becuase we looked into it prior, KNEW that we would be approved for the mortgage. she also mentioned she needs the money from this sale to purchase her new home and will have to stay a few days after closing. w/ all that info, we took a risk and made an offer w/ a no-morgage contingency, flexible terms in re: closing date and agreed that she could stay in the house (per diem fee) after closing.

again, it was VERY risky and the seller or seller's agent could have easily called our bluff.

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Posted by skew

again, it was VERY risky and the seller or seller's agent could have easily called our bluff.

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Good thing you did not buy from me. This is definitely NOT recommended practice.

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Posted by DjPiLL

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Posted by skew

again, it was VERY risky and the seller or seller's agent could have easily called our bluff.

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Good thing you did not buy from me. This is definitely NOT recommended practice.

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so what if i was buying from you? would you ACTUALLY verify that i did in fact have the funds to purchase the house outright. although you can ask, i don't think it is legal.

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Posted by skew

it's NOT ALL CASH but that is how we presented our offer. we took a chance and i admit it was risky and dishonest. we spoke to our attorney beforehand and he said that it is legal. HOWEVER if we were not appoved for the mortgage in the amont that we wanted we would have to purchase regardless.

we had the opportunity to meet the homeowner when we first viewed the house and asked when she is planning to close on the house she is buying. at that point we KNEW we had over 60 days and becuase we looked into it prior, KNEW that we would be approved for the mortgage. she also mentioned she needs the money from this sale to purchase her new home and will have to stay a few days after closing. w/ all that info, we took a risk and made an offer w/ a no-morgage contingency, flexible terms in re: closing date and agreed that she could stay in the house (per diem fee) after closing.

again, it was VERY risky and the seller or seller's agent could have easily called our bluff.

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ahhhhh...ok so, once you were approved for the mtg, did the funds become available in your bank account, and then you present the seller with a cashiers check?? is that how it works??

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Posted by DjPiLL

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Posted by MrsERod

i'm confused...if it's an ALL CASH deal, then why would getting a mortgage be involved??
what am I missing?

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LOL... cause if they do that... the buyer is lying just to make their offer look better.


If somebody came up to me and offered an all cash deal... I accepted the offer and they then decided to go back on their word and went for a mortgage... i'd drop them like a bad habit.

Any cash deal offer that comes to me gets it written into the contract so they can't pull any funny stuff.

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it IS in our contract. again, our attorney said that is is TOTALLY legal, just risky. when everything is said and done, the sellers WILL have their money. just not cut from our own account. what is the difference? a check is a check is a check.

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Posted by MrsERod

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Posted by skew

it's NOT ALL CASH but that is how we presented our offer. we took a chance and i admit it was risky and dishonest. we spoke to our attorney beforehand and he said that it is legal. HOWEVER if we were not appoved for the mortgage in the amont that we wanted we would have to purchase regardless.

we had the opportunity to meet the homeowner when we first viewed the house and asked when she is planning to close on the house she is buying. at that point we KNEW we had over 60 days and becuase we looked into it prior, KNEW that we would be approved for the mortgage. she also mentioned she needs the money from this sale to purchase her new home and will have to stay a few days after closing. w/ all that info, we took a risk and made an offer w/ a no-morgage contingency, flexible terms in re: closing date and agreed that she could stay in the house (per diem fee) after closing.

again, it was VERY risky and the seller or seller's agent could have easily called our bluff.

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ahhhhh...ok so, once you were approved for the mtg, did the funds become available in your bank account, and then you present the seller with a cashiers check?? is that how it works??

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NO, we don't have the money and NEVER will. i am assuming the check will be cut from the lender. again, a check is a check is a check. who CARES where the money comes from as long as the seller is paid the agreed upon price.

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Posted by skew

NO, we don't have the money and NEVER will. i am assuming the check will be cut from the lender. again, a check is a check is a check. who CARES where the money comes from as long as the seller is paid the agreed upon price.

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but when the mtg co. cuts the check, isn't it made payable to you??? I'm STILL confused...

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Posted by MrsERod

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Posted by skew

NO, we don't have the money and NEVER will. i am assuming the check will be cut from the lender. again, a check is a check is a check. who CARES where the money comes from as long as the seller is paid the agreed upon price.

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but when the mtg co. cuts the check, isn't it made payable to you??? I'm STILL confused...

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not sure, we haven't closed yet.

Definitely not. The lender will only write the check to the seller.

When I sell my townhouse in a few years I definitely will ask for proof if someone offers all cash.

LI market is tough so I can understand why you would do that.

Here is another question. If you were in contract (both parties signed contingent on cash sale) and you were unable to get the mortage for whatever reason you said you would have to buy it anyway. Right but where would you get the money? You said it was a jumbo loan so I am guessing it is over 400k. At that point the sellers would sue you. Seems super risky to me. I hope it all works out for you.

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Posted by KimberlyBride

Definitely not. The lender will only write the check to the seller.

When I sell my townhouse in a few years I definitely will ask for proof if someone offers all cash.

LI market is tough so I can understand why you would do that.

Here is another question. If you were in contract (both parties signed contingent on cash sale) and you were unable to get the mortage for whatever reason you said you would have to buy it anyway. Right but where would you get the money? You said it was a jumbo loan so I am guessing it is over 400k. At that point the sellers would sue you. Seems super risky to me. I hope it all works out for you.

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like you said you do what you need to do in this competitive overpriced market. we MADE sure that there would be NO problems being approved prior to making the offer. so many deals fall through because of buyers being denied a mortgage, yet 'claiming' they were pre-approved. we have received all the mortage paperwork and the commitment letter. although it is rarity, i guess something could fall through after approval and appraisal. maybe we should be but we are not at all worried.

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Posted by KimberlyBride

Sounds like you guys are good to go. You took a risk and it worked out in your favor. I am sure you will have no problems from here on out. I was just curious about that whole 'cash' process.

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again it was dishonest. so far (fingers crossed) it worked in our favor. we took a MAJOR risk and have no regrets. it's a dog eat dog market and sometimes IMO you have to fight dirty.

not sure if i would recommend the tactic to others but if you are not afraid of risk then by all means offer ALL CASH. just make 100% that you WILL be approved prior to making the offer.