Banks rehabbing

[Levi Gale]

Is anyone else seeing a growing trend of banks doing repairs on REO's prior to listing them? Is this another way for them to combat "flipping"?

[Mark Yuschak]

This is occurring occasionally in my area as well. The biggest rehab I've seen was a full mold remediation and it's trickled down to smaller things such as paint and carpet. 99% of the time it's just paint and carpet.

The local credit unions have been doing a lot of their own rehabs lately. They've wised up and learned they can get more for the properties if there aren't missing kitchens, bathrooms, plumbing, etc. It makes the most sense for a local credit union to have a property rehabbed than it does for a large, national lender. The CUs have a better gauge on the market, contractors, etc.