Foreclosure + Short Sale, Opportunity or Risk?

[Travis Kumar]

I have a property under contract, that my GF and I are planning to house hack then rent out entirely after a year or 2. While under contract, the property appeared on a foreclosure site I follow. The date of the foreclosure is prior to my contracted purchase date. My thought is, wouldn't the bank be incentivized to sell at my rate, as opposed foreclose on it?

Does this provide an opportunity for me to further negotiate, if the bank re-opens negotiations? Or does it present risk, that if appraisal comes in higher, the bank can ask for more, as well as take additional offers.

My understanding is, they can accept my offer, or if the appraisal comes in higher than my offer, re-open negotiations. 

Trying to understand if I have leverage here. It appears to me I do, but I am brand new to this so I am unsure. 

Any thoughts are helpful. Thanks!