Banks can name the terms and conditions under which they will sell a bank owned home and you may not qualify to buy a bank owned home.  Here are some reasons why you might not qualify to purchase a bank owned home.

1. Some Bank-Owned Homes Do Not Qualify for Conventional Financing.  If the property requires too much work to meet health and safety codes, a buyer offering a 20% down will beat out an offer from a buyer obtaining an FHA loan.
2. FHA Appraisal Conditions.  FHA buyers may back out if the appraisal calls for conditions.  Foreclosed homes may require too many repairs and appraisers will note any damages and inoperable or missing appliances.
3. Banks Prefer Cash Buyers for Bank Owned Home.  Buyers with all cash will beat out any conventional offer from other buyers even if the conventional offer is above list price.  It is unlikely that the bank will consider an offer from a buyer who is relying on financing if the listing condition states cash buyers only.