If there is still an owner, then the house hasn't yet been foreclosed on. The bank will not allow someone who lost a house to continue to list it for sale or to live in it after it has been foreclosed on. Depending on where you live, foreclosure takes a few months to finish once the process has been initiated by the bank.

I know you guys are looking for a deal, but if you bought the house from the owners, before the foreclosure, you would be doing them a great service by helping them to not become foreclosed on and not have that over their heads forever. Also, once the bank has it for sale, there will be an auction for the house. So the initial bid may be set for $37k but, depending on the number of people who show up for the auction, that could be much higher.

You know, I just re-read your post. Its possible you saw the house on line as a foreclosure and the people who have it up for sale now have already purchased it from the bank and are try to "flip" it.