*Loan,banking and credit>>>mortgage loan

Is it legal for a bank to accept a cash offer on a house instead of a higher bank loan/mortgage offer?.?

A cash offer was put on a foreclosed home that had some questionable things that might make it ify to pass inspection. A cash offer was made and an bank/mortgage offer almost a couple thousand dollars higher was given at the same time. The bank accepted the lower cash offer most likely because they didn't have to wait for the house to pass inspection. Is that legal?

It is legal, banks or any other seller cannot discriminate because of age or sex or ethnicity, otherwise it is up to their discretion. A cash offer is a much stronger offer as many loans fall apart before they get to the closing table