You asked about how much lower to bid than list price on bank-owned listings. As a general rule, I suggest to my clients that they offer a 95% of list amount. However, when my most recent client did that, and we learned there were two other offers, my client raised the offer to full price. Still don't know if she got it.
Hope that's helpful,
As you surmised, the bank foreclosed on it. Now it will come back on the market as a bank-owned REO some time in the near future.
If you want to write an offer on it when it does come back on, it should be based on a valuation carried by your agent who should produce a comparative market analysis for you. Note that banks generally price homes very aggressively.
If you want to know when it comes up for sale (or if you want to know about other bank owned homes etc.), let me know.
All The Best
Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585