I read this article earlier today

 http://market-ticker.org/archives/1539-Possible-Credit-Dislocation-Be-Warned.html

Now as I don't know the website or the author, when I bumped into a realtor later in the day I asked him a question with reference to this paragraph.

"IF this is going to manifest as a dislocation of some sort it will probably occur within the normal closing window for real estate transactions, since the anecdotes related to that have the best-defined "reach", and the discounts being accepted to avoid this risk are massive to the point of denoting near-certainty of this event in the minds of the market participants who are electing to accept these cash-discounted offers."

He had an anecdote for me. He completed a foreclosure sale last week. The appraisal was 100k. He had conventional offers at 105k -conventional meaning based on an approved mortgage. The bank accepted a cash bid of 90k.

Does anyone else have any anecdotes? The first person that I ask (and he is not a friend and wasn't looking for business) confirms what I read on the internet. Is CASH king?