Most important; select a real estate professional to prepare your offer and submit it to the Bank. The selected real estate professional has to understand the market where the home is located and let you know if the property is a good deal, based on what has sold in this area on the last 60 days. Be prepared to be countered; meaning that the Listing Real Estate Agent in charge of the foreclosure, as it might be the case, would call your Realtor the same day or in the next couple of days and ask if this is the highest and best offer you are willing to give.
Also, be ready to move fast. Many of these foreclosed homes, in many areas get more than one offer. It helps if you have a good downpayment or if your offer is all cash, but if you have the income required to qualify for the loan and have more than an average credit score you have a good chance of getting the home. Set in your mind the highest price you are willing to pay for the home in the condition that it is. Good luck.
Once you have seen the property, be prepared to move quickly. It helps immensely if you are already pre-approved for a mortgage. If your Lender cannot work within the time frame designated by the Foreclosure Bank, theForeclosing Bank will most likely suggest a Lender for you who can get you approved quickly.
Mortgage broker need to provide you a lender approval prior to working with realtor, letter will be submitted with sales offer.
Not all offers you submit would be accpeted by bank be prepared submit several offers on other properties, with any bank drama not caused by listing/buyers agent, banks work differently than normal seller procedures.
As far as bidding goes on a foreclosed home, you would bid as for any other. The important thing is to be qualified by a lender first so that you know you qualifiy for the type of loan you want and know that the property meets the qualifications for the lender. Not all foreclosures will qualify because of damage that may have occurred to the house either by digruntled homeowners or vandalism while vacant. Bank-owned homes are sold as-is meaning no repairs will be made. Most lenders want the home to be liveable at the time of purchase. For example, I have been to foreclosed homes where the furnace had been removed, so the home was not considered liveable. This property needed a cash sale. If you are using an FHA loan to purchase a foreclosed manufactured home, the home needs to meet requirements in how it is set up on the foundation to qualify, and it can not have been moved from another location to this resting spot to qualify! As stated in some of the other responses, having your own home inspection done is very important...or find out if a recent one has been recently completed on the property as part of full disclosure by the owner, in this case the bank. You may find reasons why a previous deal fell through.
You make an offer on it just like any other home for sale. Just know that the banks take longer to respond to offers. If the home is priced to move, you may find that there are multiple offers on the home. The bank can then decide to counter either one of the offers or ask both buyers for their "highest and best offer.". Through your realtor you may want to find out if there are any other offers on the home (or if another is on the way). This can help you offer what you truely want to pay for the home rather than get caught in a bidding war.
Keep in mind that even though the bank says that they are selling the home "AS IS" they can't prevent you from conducting your inspections. Since you won't have the home's history from the original owner you will still want to know what you are getting into.