not sure how this will work out for us.  The listing agent is working on getting our offer in front of Fannie Mae however he said that they have already turned down an offer of $185k so they will probably not be receptive to ours and allow the home to go through with the auction.  The highest bid right now is $90k which is still lower than our offer    and the auction ends sunday.  In the meantime I think we will go to some open houses and go back to another home we were interested in.