Joseph,
I have been the Buyers agent on many bank owned sales, and this is more common than you may realize. I would be prepared to have this go on for up to 6 months. The foreclosure deed and funds will most likely still be directed to WAMU, and these situations do work themselves out 9 times out of 10. If you have a great deal and you are not locked in to a rate with your lender, this may in fact work to your advantage right now. I anticipate rates to stay low or even drop. You will not get a committment from the bank, it will just be done and then they will expect you to close within 30 days. These are the tradeoffs when buying an REO vs. a conventional sale. Be looking for additional opportunities in the mean time. Do you mind if I ask where and how much? I would be happy to give you my opinion if it is within the mid Cape area. I specialize in investment real estate and can confirm whether you are in fact getting a deal. Good Luck.