If I can be of any assistance, please let me know.
In either case the bank will send an associate of some kind out to determine a price for the house. That price will generally reflect a market value less the cost of repairs. They don't leave a lot of cheese in the deal as far as I have seen. Now, if it is a value around 40k or below..cash buyers are snatching them up.
That said, if you have enough cash on hand and the owner is agreeable, the bank may accept a lesser cash offer early in the process in order to save substantial legal costs in foreclosure actions.