Buying a REO but I have a defaulted loan with the selling bank

[Juan Rodriguez]

Hello all, first time poster here. 

So I'm planning on buying a REO property which seems to be a great investment. The issue is that I have a defaulted second mortgage loan with the selling bank, so the question is; if I submit a cash offer, is there a possibility that the bank will keep my money to cover my current debt with them?

Thanks in advance.