Bank rejected offer due to financing

[Jeffrey Yates]

*First post - exciting moment for me* Hello, BP! Thanks so much for all the information, already! Amazing community, now it's time for me to participate. Here's my situation:

I've found an REO property in our neighborhood in South Florida listed at $130K but stagnant on the market for 60+ days. Based on comps, condition, and lot size we've offered $80K and know it's reasonable - seller's agent agrees. Just got a response today, bank rejected our offer "due to financing -- please see if buyer can offer cash and resubmit your offer." By the way, we waived financing contingency but had to provide proof of funds along with offer, and don't have the full 80K, so had to be honest about the financing piece.

My question is this - since it's a cashier's check for the seller at closing regardless of where it comes from, is there any way around the cash offer thing -- that is, can I find a financing arrangement that allows me to PRESENT like it's a cash offer but have a separate agreement (on my side only) to pay a lender -- isn't this the benefit of private financing? Also, that begs the question, is it allowable and legal?

I guess my question in general is: when a seller is being choosy and only entertaining cash offers, what are my ways around this?

There is little to no chance of me being able to show proof of the full $80K. But I do have significant capital available to do something like 25-30% (maybe more) down if I can find a smaller bank or private lender that will "play ball." Lastly, I've got equity in an existing house that I own (though not enough for the full purchase price sadly), can I use that to my advantage in any way other than increasing my down payment? (i.e. as collateral for private lender/HML to make my offer "appear as cash?")

Thanks!

Jeff

[Wayne Brooks]

First, how were you going to finance it, and did you have a preapproval from your lender?

Is it in "financeable condition" for a conventional loan?

If you are really confident, resubmit with 1)no inspection 2)no financing contingency (which you did) 3) and put the 30% down for EM.

Obviously, you need to be confident of what you're doing.

There's no "playing ball" by Any kind of lender, to make a financed offer look like a cash offer. POF means cash in the bank in an account with Your name on it.