There are multiple AMC's that insist you do not identify the property as an REO, I suppose with the thought that buyers automatically think the property should be sold for less. The problem is our mls requires that you disclose the REO status. I see many realtors ignoring that disclosure and some not even commenting in Realtor comments the REO status; you find out when you attempt to place an offer. Probably is fineable in my mls if anyone makes an issues of it.

Yes, showing a total lack of sensitivity to the critical role this information plays in our nation's vital BPO Industry.

Some of these REO sellers are at the back end of the curve. I belong to 3 MLS's and each one now requires that REO's and Short Sales be identified. There is a field in the input status for "REO?" and "Short Sale?" that must be answered yes or no. And if it was entered before the requirement, when you do any kind of update (listing extension, price change, etc) these fields pop up as unanswered and the changes can't be saved until they are answered.
Luckily, most of the REO listers in this area are straight shooters and answer YES. The same can't be said for the general agent population that seems to be handling short sales.