New startup called Ribbon helps buyers make cash offers

[Amanda R.]

Another startup trying to disrupt home buying financing. Upon determining your "Buying Power," Ribbon backs you for a guaranteed all cash offer to help you win out against other bidders. You have until closing to secure your mortgage and if you don't, they purchase the house for you and you rent from them until you secure your mortgage. Ribbon's revenue comes from a 1.95% fee of the offer price. 

Interesting concept that could help in ultra-competitive markets like mine (Northern NJ) but I wonder how sellers would feel if buyers gets their mortgage before closing and use that financing to close the deal? Seems like a "bait and switch" that could cause the deal to fall through.

https://www.curbed.com/2018/5/22/17362344/cash-off...

What do you think?