You are not likely to get the property for free but you can certainly negotiate with the bank for a reduced price based upon the problems with the property and the potential liability of the bank because of the flood zone issues. Have you tried to make an offer on the property before? Or have you just heard that generally the bank is not looking to sell the property?
Most bank owned properties are listed with a broker/realtor, so you should be able to open up a dialogue with someone to see what the bank is willing to do to liquidate the asset.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. I am licensed in Arizona and can only provide general comments on matters outside of Arizona law. Actual legal advice can only be provided after a direct consultation in which all of the relevant facts are considered before providing a response.