The following is based on my conversations with a couple of agents who work with REO listings owned by M&I Marshall and Isley Bank.
I’ve recently discovered that M&I bank made an interesting move with a whole passel of their REO properties.
These were unfinished construction in the luxury price ranges located all around the Valley. M&I pulled them temporarily off the market, and another Realtor told me he was told M&I is considering whether to spend money to finish the remodel or renovation work, then relist the properties (still REOs) at higher prices to reflect the newly finished status of the homes.
The way I see this, it’s potentially a smart move for M&I. Jumbo loans are difficult enough to get lately, but the thought of getting a jumbo loan on an unfinished remodel or reno boggles the mind.
The buyer would have to have cash or get a construction loan. The pool of folks who’ve got enough cash to buy luxury homes is small enough. The pool of lenders who are offering, or buyers who can qualify for this type of exotic financing is teensy tiny indeed.
Seems to me that M&I could have called this one right.