"Only owner occupied will be approved"

[Joe Gemma]

Good Afternoon BP.

Currently searching for what will be my second investment property in the Baltimore county area. Came across a disclaimer in a listing (on a property that passes all my initial criteria with flying colors) that reads; "Bank approved short sale ~ approvals will be obtained within 48-72 hours.  Only owner occupied buyers will be considered for approval"

This just confuses me from multiple angles. Who is declaring this requirement? The bank I presume...?

Next. From a seller perspective, what does it matter if the buyer is occupying the home or not?

And finally, as a buyer, must you disclose your intentions with the property to the seller? I can understand a lender needing to know this information, but a seller needing to know is something I cannot wrap my head around.

Anyways, I figured the BP community would have the insight that I'm looking for.

Thanks as always.

Joe