Rachael, I've worked with five different REO Sellers and the answer is... it depends on their workload. Right now most sellers are trying to get the open escrows closed by the end of the year so honestly, it'll probably be after the first of the year. With many Asset Managers handling up to 500 "assets" they do the best they can for what they have. Please, be patient, if you like the property well enough, it will be well worth the wait.
I personally work the Las Vegas Market. If you're being represented by a Realtor, you might want to dig deeper into how financially sound the Homeowners Association is (many are in Bankruptcy) and what the ratio of owners vs Investor/tenants is. If the project doesn't have a limitation on the number of investors that can own units you might end up in the same situation we have here where you CAN'T SELL THE PROPERTY BECAUSE THE NEW BUYER(S) CAN'T FINANCE the property due to too many investor owned units. This could limit the project to "cash" purchases and drive the value of the property down. It can take many years for the project to recover.
Good Luck with your new home purchase! Have a Happy New Year!