Are CT Bank REO's Not Selling REO's Sell Undermarket No More

[Edwin De leon]

I want to simply know if I should go after REO 3-4 Multifamily Properties in Connecticut or I shouldn't, is it a waste of time for me to go after them if I am looking for undermarket value prices multifamily houses in CT .......... is this true or false below:

Just got off the phone with someone that told me in state of CT, banks who have REO's, don't have the inventory like before to let their properties sell at under market value prices anymore, and are repairing their own properties to get top dollar for them, so it is a waste of time to try to purchase them and rehab them to make money from them in the state of CT.

If this is true, then if I want to still find undermarket value multifamily houses in state of CT to purchase with my VA Loan, should i be going for Foreclosure properties instead of REO properties, but won't the foreclosure sellers want cash buyers instead of someone like me who wants to use the VA LOAN to purchase my 1st multifamily property.