Congrats for FINDING a home you like amongst all the foreclosures out there - always exciting putting in an offer! Some of the excitement is caused because of multiple offers. Banks like as many offers as they can get. The agent representing the bank generally is straightforward and truthful. It's his job to make sure all parties who have seen the home be notified as to offers being entertained if that is what the bank agreed to so people will put in their best and highest offer.
My advise would be to know your budget, set your highest price, and put in your best and highest offer. DO NOT GO OVER YOUR PRICE. Otherwise, you might have buyer's regret or get into a tight financial position. My favorite part of being a agent is shopping for homes - and I can guarantee there is always more coming around the corner.