Consequences of Banks owning properties?

[Daniel B.]

Hi,
I was wondering if anyone knows the answer to this?
What are the consequences of banks foreclosing on a house and then just holding on to it? The reason I ask is I am looking into bidding on a bank owned property by a small local bank. The property is not yet on the MLS but I know an agent who is trying to get the listing and says the bank has accepted offers before actually listing it in the past. There is currently a tenant in the property who is paying the bank rent and keeping the place lived in. Landlord got foreclosed on, not tenants fault. Since the bank is currently making money on the property, what incentives do they have to try and unload it quickly? I thought I had heard something about they get audited and it looks bad to have houses on their books/they are not allowed to foreclose and just hold onto the property? Anyone know anything about this?
Thanks! Daniel