Each bank/lender works a little differently, but they all have similar goals.  They want to get the best price possible and have no interest in "dumping" real estate cheaply.   Though in 2008 banks are wanting to unload excess Michigan foreclosed homes.  Generally, banks have an entire department set up to manage their REO inventory.  Remember it takes time to get a purchase agreement done.  Remember banks do not work on weekends and only work 9-5.  So it may be a week or two before your offer is accepted or rejected. 

Once you make an offer to purchase, banks may present a "counter-offer."  It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible.  You should plan to counter the counter-offer. Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies.  Even once an offer is accepted, the bank may insert wording like "..subject to corporate approval with 5 days."

If two people are making an offer on the property.  The banks real estate agent may ask you to "make your highest and best offer"  Then the bank will make a decision on which offer they like best.

The bank will generally like a cash offer, and accept the highest price.  Cash is king even with banks.

Banks always want to sell a property in "as is" condition.  They are not going to spend money and take the time to fix up the house to your standards.  Your choice is to accept the house "as is"  Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.

Even though you agreed to "as is," always give the bank another opportunity to make repairs or give you a credit after you´ve completed your inspections. Sometimes they´ll re-negotiate to save the transaction instead of putting the property back on the market, but don´t take that for granted.

Banks do not want to see a lot of proprietary disclosures.  If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements. In Michigan there will be no seller's disclosures as the bank has not lived in the home and they are unaware of the homes condition.

Most banks will not provide financing on their REOs but it doesn´t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."  Also if there is extensive damage to the home you probably are not going to get a mortgage for the foreclosed home.  You will have to pay cash for some homes.  Banks will not loan money on a home that is missing a furnace, missing a kitchen, has extensive repairs or drywall damage.

• Offers are usually FAXED to the bank. The listing agent may or may not need your originals. There is no formal presentation.  Keep in mind: nothing happens evenings and weekends (banks are closed). 
  The listing agent may have bank forms and addendum's you need to sign.  Read these over carefully.
  The listing agent will usually request to hold the deposit check.

Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter.  Make your offer easy to accept.

Hopefully these tips will help you buy a Michigan Foreclosure.  Remember that REO's may or may not sell at market value and may not the deals presented on late night television.