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Do banks accept contigent offers on REO properties?

We have an opportunity to purchase a house at a great deal that is currently in pre-foreclosure; We would like to make a contingent offer if/when it goes to bank owned. I've been told that YES they will accept and NO they absolutely will not accept the offer. Our agent tried to ask the seller's lender, but they won't give a straight answer (although she said it may be an issue). And I've tried calling banks to find out their standards, but couldn't reach a human and the automated system didn't know. Hopefully someone here does. Thanks!

Public Comments

1. Most banks will not accept an offer if it is contingent on something. But then it again all depends on what the contingency is... Do you have to sell a house 1st before you buy this one? If that is the case, then most likely they will not go for it! But each bank is different... I would just try to submit the offer with the contingency and see what happens, usually if they don't like what it's contingent on they will probably counter back to you with the contingency taken off. Your Real estate agent should already know all of this. Good luck to you.
2. If I'm understanding correctly then that is an interesting situation. You want to make an offer to the bank contingent upon them acquiring the property through foreclosure. Sounds creative but I don't think most banks would do it. They don't actually own the property until they've gone completely through the foreclosure process. They will probably have never even sent anyone out to the property until it has been in their possession for a while. So, while it sounds like a creative idea I don't think it will work. Just make sure you create a relationship with whoever it is at the bank that will handle the property once it becomes a foreclosure. You should be able to tell when the auction date is so you'll know when they acquire the property. Once they do, make contact with the appropriate person and try to be the first one in with an offer. If the property is in pre-foreclosure why not go through the current owner and propose a short sale? Good Luck!