There are several paths to home ownership,
four different scenarios for buying a house in the Puget Sound and Seattle these days are...
1. Buy a house from a person who owns the house(this is the traditional way most people buy and has many advantages).
2. Buy a house from a person who owns and who needs to sell and negotiated a Short Sale(less than is owed on the note to the bank).
3. Buy a house that is owned by the Bank, these are REO(Real Estate Owned) and usually did not sell on the county steps at the foreclosure sale (sheriffs sale) and end up on the market sold by Real Estate agents working for the Banks directly as clients as the bank owns the property.
4. Foreclosure sale at the court house bidding on a house with cash. (sometimes sight unseen).
http://REattle.com/