Do banks have any clue what is going on?

They have zero clue on what is really happening in the real world!

Oh yes they know, they are like all the other free loaders of America. Why do for yourself what the government will pay you not to do.

Back in "the day" lenders used to do field checks of REO properties.  They sent out a team to make sure that the home had been cleaned out, yard was mowed or snow shoveled etc.  I haven't heard of any field inspections in the last 6 months and so crews can just check the boxes with no fear of being caught.

No they don't.

Patricia, that is one of the hazards of loaning on properties all over the country. The cleaning issue is one of the least of their worries. The situation where unscrupulous folks are giving banks erroneous low values, so that they can buy the properties first and immediately resell to another purchaser are much more costly. I have been reading of more of these types of shenanigans taking place in Realtor's offices where some have been hired to do the BPO for lenders.

Are you wanting a direct answer? If so, then I believe it is a resounding, "NO!" LOL