The problem here is that if the bank takes over the house, you may not be able to buy it for many months. It depends if the owner has a right of redemption. If so, the bank cannot sell it until the time expires. They also can be known for sitting on their foreclosures for months - not even considering offers.
Another option is to wait until the property goes up for auction and then go and bid on it. The caveat here is that you will most likely need to have 100% of the purchase price within 24 hours, depending on the requirements in your area.
Personally, it sounds like your broker isn't fighting for your interests. If you qualify for a bank loan, I cannot see why both the owner and the lender wouldn't jump on this idea.