Bank owned homes
 These are homes that have gone through the home foreclosure process voluntarily or un-voluntarily. Generally speaking, the lien holder (bank) has purchased the home at the court house steps for less than the money owed (payoff), thus making the property a  "Bank owned property". Most banks have a real estate agent or a agent that markets these properties for a fee. Thus, most are listed for sale in your local multiple listing service.
   In all cases that I am familiar with, the bank will require a letter from your bank or lender giving the "ok" for the purchase of a properties for the amount owed after your down payment.
 You can ask the bank "seller" to pay for closing costs and or for the cost of repairs etc. A Remax real-estate agent that is experienced  in the acquisition of bank owned homes can best represent you the buyer.