New Trend? Less REOs Available for Flippers

Here in New Jersey, we still have a backlog of foreclosures that haven't hit the market yet. The process to foreclose in NJ can take years. I currently have an REO assigned to me that the occupant hasn't paid his mortgage in 7 years! And then they give them Cash for Keys to move out!

Well there seems to be a new trend by banks and their REOs ,which can mean even less inventory for house flippers to choose from. The banks are basically flipping their own properties!

The banks are renovating their own properties to maximize returns. I think it makes sense. And I am not talking making some minor repairs or addressing major repairs like a leaking roof. They are doing FULL rehabs with granite, stainless steel appliances, refinishing floors, and even landscaping! Of course though, if you ever dealt with the bank with a foreclosure or short sale, they move at a snail's pace!

I am currently receiving REOs from 2 different banks in Bergen & Passaic Counties. They had me get multiple bids to rehab the entire house. Hopefully this doesn't become a trend with all the banks or its going to get even tougher for the real estate investor here in New Jersey!