Sndral-
I think all the answers below are useful. If, however, you notice a sign in front of a particular property, or know about a particular property that doesn't have a sign in front of it, I'd be happy to do a little research for you to find out when it's likely to come onto the open market.
The last Pacific Grove REO was one which I'd been following for several months. I'd told my prospective buyer that the property would be coming on the market and my buyer had the time to organize his finances so he could bid on it.
Please note that most REO properties must be listed on the mls and exposed for 1 week prior to offers being reviewed by the banks.
I live and work in Pacific Grove.
Regards,
Maureen Mason
DRE #00977430
Coldwell Banker
Pacific Grove

Hi Sndral,

Yes, there are Agents that in fact develop relationships with banks to sell their REOs. However, working directly with one of these agents (Dual Agency issues very possible) you will not necessarily obtain a significant advantage due to the fact most banks require their REO listing to be on the MLS a set number of days before accepting offers.

Right now, depending on the market, it is not uncommon to see a large amount of Notice of Defaults without a corresponding surge in distressed property listings, and property that has reverted back to the Bank that also is not hitting the market. I cover these topics in detail here:
"Coming to a neighborhood near you: REO Shadow Inventory"
http://www.trulia.com/blog/steve_ornellas_mba_re_mastersgri/…

I believe you will find it a very interesting read.

An extremely important topic many Buyers are not aware of is Dual Agency. While DA is not illegal, you do give up one important benefit by entering into such an agreement: advantageous advice!
http://www.trulia.com/voices/Home_Buying/Why_should_I_NOT_us…

Best, Steve

Sndral: Many times the seller is still in the house and has 30 days to vacate the property.
Many times the new broker assigned to seller the property holds it and works on marketing to his private database of buyers and investors before posting to MLS for the general public. Many times the seller was working on selling as a short sale, the bank does not accept the offers, then sells the property on the court steps, only to buy the property back for a different department. There are many departments within a bank and they don't always communicate very well to each other.
It's no longer a simple world of selling properties. It's difficult and complicated since the banks are now in real estate business, not only as a lender but a holder of the deed.

If I can assist you, I live within 10 minutes of the commuity, having lived her for years and been a REALTOR for seven years. All the best, Linda Shepard, 831-238-0828

Sndral, there are a number of reasons these properties don't immediately hit the market. They include:
1. The property may be occupied, and the bank prefers to have the property vacated before marketing them. If the occupants are tenants, it takes quite some time to evict or convince them to leave with some payment as compensation. I've had several listings where it took 4 months or more to get that done.
2. The property needs to be evaluated for marketability and repairs or inspections done. The bank will want one or more price opinions done to ensure they are getting as close to market value as practical.
3. The infrastructure the bank has in place is often insufficient to keep these properties moving. Trained staff with the authority to make the decisions and the time to handle the workload seem to be a rare commodity. Keep in mind that the banks are dealing with a huge increase in volume in this area. At the same time their bottom lines are impacted and they are expected to control expenses. Also, the process is often outsourced to an asset management company, which may have the same issues and little oversight by the bank.

To answer your question about agents, the decision-makers usually select brokerages who have dedicated staff and resources to serving the needs of their clientele, the sellers (banks). It is a very competitive specialty, there is huge potential for the brokerage, and they are under tremendous pressure to perform.

The banks always expect their properties to be actively marketed on the MLS, to ensure the best price and terms. All agents will have the same access to listings. As a buyer, your interests may be best served by finding a buyers' agent who is looking out for your interests, not trying to work with a listing agent whose first allegiance is to their primary clients, the seller. There are exceptions to that, but it's a reasonable rule of thumb.

Hope you find this helpful. If you have other questions I'd be happy to talk with you. Feel free to contact me through my website, listed below.