Special Process
Bank owned properties don't generally follow the standard offer and purchase process. Here are a couple of the major differences.

Pre-Approval letters are required with all offers. Banks want evidence of a strong buyer. For cash buyers proof of funds is also a must.

Most banks look for at least 3% of the purchase price to be held as earnest money. Exceptions are commonly made, however the minimum is generally $2,500.

Purchase goes straight to Purchase & Sales Agreement once an agreement on terms is made. This means that often a offer never actually gets signed by the sellers.

Home inspections after agreement are for informational purposes only. It is recommended that buyers have a home inspection done prior to making an offer.

Contingencies on sale of buyer's home are generally not allowed.

Many banks require a "per diem" fee as part of the agreed upon terms. This is a fee, or penalty, that the buyer would pay per day should they fail to close on time and are at fault.

Banks really don't like extending contracts into the next month. Should a buyer fail to be ready to close by the last day of the agreed month the bank will likely not issue an extension and will cancel the contract, retaining any earnest money for failure to perform. The more warning given, the more likely that an extension will be granted.