The answers are right on the money. My partner and I represent several banks on their REO. Many times, we know about houses that are going "into" the foreclosure process. We have to let the bank know when these properties are vacated.
Our banks, will "entertain" and offer, however they require 2 BPO (broker price opinions) to be done and an actual appraisal before they accept the offer. It doesn't matter what the amount of loss is for the bank - they will price/accept an offer based on the current "as is" value.
In many instances, the buyer does have to wait on the foreclosure to be recorded properly so that the title work is correct.