The biggest problem with foreclose homes is the type of financing. If you are going FHA or VA, then the asset manager would put you on the bottom of the consideration list. Someone paying cash and not asking for closing cost would move up further on the priority list for consideration.
Most buyers want a deal and that is why they are looking at distressed houses. However, a lot of individuals don't fully understand....YOU ARE BUYING THIS PROPERTY AS IS and the bank isn't going to do any repairs. On most FHA and VA loans if there is repairs required they have to be done prior to closing by somebody and that somebody is YOU. Do you want to do repairs on a house that you don't own...let alone if the REO (bank) department would even let you due to liability issues.
There is another option, a 203K , but the interest rate is higher and the buyer cannot do the repairs himself unless they are licensed in that field. So, the buyer must get contractors from an approved list, have bids in place, yata yata yata.........The bank wants clean, non problematic , cash, no closing cost offers at all turns.
The lender most definitely does not want the property - remove your concessions and send the offer back to the bank.