This is do-able:
Lets say that you want to offer $100,000 for an REO; just make it $103,000 or $104,000 and ask for Closing Costs to be paid by Seller.
Normally, the Banks do not want to lose and more money on a house by Repairs, Inspecitions, or Closing Costs. But they are realistic to creative investing.
That said; if you have the money for Closing Costs, don't do this!
It complicates the offer and might lose the house for you. You want your offers very simple; you want the Bank to want to accept yours over everyone else's. Don't get hung-up over Closing costs.
Good luck and May God bless