Are bank foreclosures (REO'S) avoiding FHA buyers altogether?

 Not sure if it is me or what, but are Bank Foreclosures (REO's) going out of their way to avoid FHA buyers?  this year alone, I had at least 5 buyers that had lost the property of their dream to

a buyer with a conventional loan or a cash buyer. In some of our Southeast Regional MLS in South Florida listings may read: "cash buyers only" or: "no FHA offers". I wrote pretty tight offers, went armed with underwriting scores, proof of funds to close, credit worthiness, and NADA!! Buyers were dumped -in one case- after a month of waiting. One of these buyer's offer was read way AFTER the transaction was close.

Let's take a look at what the U.S. Department of Housing and Urban Development has to say about the history of FHA: Download The History of FHA

Comments

[Stop Foreclosure In Fort Lauderdale]

Cash buyers are the best way for someone to sell. They don't have to worry about qualifying for a loan and they can close in a couple of days. Conventional loans are people who currently put down 20% and can qualify. When it comes to FHA the people might be approved they might not.

[Marina Sarabia]

I have to disagree with this for many reasons:

1- When it comes to getting a loan there is always the qualifying factor whether is Conventional, A or FHA. Better chances with a 20% down buyer? Of course.
2- Cash buyers are NOT necessary cash buyers. They -in many instances- are getting the money from an outside source other than their bank account or their mattress.
3- 2 days closings? Never seen such a thing in 20 years… but please, explain how you can do this. Sounds a “little” puffy.