Today's REO policy?

[Vince Szabo]

I did some investing in the '80s and then REO departments were willing to deal, like financing the rehab and the puchase what they called "in-house" loans. I wonder if any of you insiders can enlighten me if this is still going on or there is no other option other than all cash.
On the same note, can anyone explain the logic behind banks wanting only cash (and much less than they had in it) then turning around to fund another property, which more likely end up the same way, with that same money?