Hopefully some of the previous answers aren't discouraging you. I personally find some of them laughable, because you CAN absolutely negotiate on a bank owned home - our realtor knew that and that's just what we did. It took a long time (about 5 months from when we first made the offer) and it may be sold "as is" but that doesn't mean you can't negotiate pricing and terms. As I said earlier we negotiated all of our closing costs, + $9000 off asking price. We closed on our home in July. As far as the 0% down that may be tougher and is totally based on the bank and your credit. We received information from some banks stating we had to have 10% minimum, but were able to find one that would finance a 30 year conventional with only 5% down. Good Luck.
Don't know where you can get a 0% down and closing costs paid on bank owned property, but never say never, maybe a mortgage genius will whip that out of the bottle.
It sounds like a good idea, but banks are a little scared right now. Have you thought about a downpayment assistance program?
If you need that type of financing structure then feel free to contact me and good luck to you.
A part of the closing costs can be negotiated. It is rare that the bank will pay for all of it.
Each lender is different. Select a real estate professional who knows how to ask the right questions so that a win win transaction can close to the satifaction of all parties.
Remember that banks are not people and have established policies and procedures which often times make not sense to people.
Best of luck!
So the answer is yes, it is possible. The real questions is how likely is it. You need to speak to your Realtor and mortgage professional. They should be able to help you find a program that can work for you.
If you are not a first time buyer, then you will have a much harder time putting down anything less than 10%. Keep in mind that with many programs not owning a home for the last 3 years is considered a first time buyer.
Feel free to contact me if you need any other info.