The whole bank owned thing changes the playing field.
Depending on who the "players" at the bank are.
Some even go so far as to be married to the reatestate agents .
Ask me about that one some time.
The 38K,........is it an actual listed, ask price? or the starting point, (lowest first bid)?
Look at the value and go with your gut.....not your heart.
If you can ........throw the cash on the table .
Personally, I hated waiting for the board to make the decision and ultimately the house I wanted went to "a higher offer" without futrther explaination. (see above comment)