You should wait until the property comes back on again as an REO and write an offer at that point. Let me know if you need some help.
It is important to realize that banks are a business and they are led by a select few decision makers who establish the protocol for their company to respond.
The real issue is that all facets of the financial market are being impacted and this is all in uncharted waters.
I agree.. the left hand does not know what the right hand is doing :(
By best advice is to get good advice with a industry leader that follows , understands and offers solutions to what is happening in these turbulent times
With the state of todays economy, I'm sure you'll find this VERY helpful for you and people you know.
CIQ Solution Center http://www.creditlineiq.org
Also, You can track the auction date here if you like. http://www.caferealty.net
And you should have your Realtor set you up to be notified automatically via email when it hits the MLS again.
REO Listing Agent
Here is some info on short sales and bank owned properties
Erica Jones Starkey
JSCA Real Estate Group
Providing Superior Solutions for Your Individual Real Estate Needs
It could be also that the seller themselves decided to foreclose (there are many reasons they may choose to do this) and to preserve client confidentiality the other agent advised you the bank wanted to foreclose.
But, they are turning the REO's over pretty quickly these days, so if its close to sale date, it may be back on market within a month or so, and then you can move in 30 days of acceptance if you get the deal.