Depends on the price. But I will say this, either in large quantities in a community is going to have an inpact on prices - and banks.
And what if the bank decides to just hang on to all those homes and rent them out? I'm just wildly speculating here, of course.
They usually can't. And if they could (speaking as a banker here) they would lose their shirts. We're not really IN the real estate business. It's why foreclosed houses usually get sold at auction and not by Realtors.