Yes, it is possible and legal, UNLESS there is evidence that the original coveyance represented a fraud on the bank--for example, that you arranged to sell it short to an associate, friend, or family member, who would hold it for you for a time, then re-sell it to you later. If this occurs and the bank becomes aware of it, they could sue you for damages (representing their loss from the short sale), including potentially punitive damages and/or attorneys fees.But if the original transaction was an "arms length" one without collusion and it happens that the home later comes on the market and you put in the winning bid, then you could re-purchase it.