I've personally experienced--and heard about--other slight variations on that. I submitted an offer on an REO roughly a year ago, after having done a walk through with my GC. The listing agent was highly unprofessional; he was indignant and refused to submit my offer. He balled out my agent and indirectly slammed me for making such a "ridiculous offer"--only to accept a similar offer from another buyer 5 months later. One of my mentors has submitted offers on several REOs that were rejected--only to receive calls (several months) later to inquire to see if he was still interested in them.