It is a very unfortunate that this sort of stuff happens. Not only does it suck but the only recourse for consumers is to make a complaint to the DRE and/or the better business bureau. Kismet you may want to also ask your agent to call the listing agent and ask them if the agent who is representing the buyer is an agent in the same office. With REO properties usually the lender does ask the listing agent to hold the property on the market for at least a few days.

There is certainly alot of abuse going on. Additional regulation to level the playing field and make short sales AND REO properties more available to EVERYONE would be quite welcome.