Aloha Karen,
There is no set way to know what a default will sell for because it really depends on the neighborhood. In areas where there are many defaults they typically sell below market value. In areas that there are few defaults the houses are going at market value if they are in the same condition as surrounding houses.If you need more information please contact me,
Don Hickey 858-337-9396
Broker in Ca & Hawaii

Typically, you will have to pay more than that, but you could get lucky. Do lots of research, including competitive market analysis, leans, taxes, etc. and then decide.

Could be if you are purchasing on the courthouse steps. The final terms will be published and available in local newspapers or the courthouse. All purchases on the courthouse steps (True foreclosure auction) are made without inspection periods, contingencies and must be paid in cash (No loans). Frequently, homes are offered for less than the defaulted amount after the home is foreclosed, obtained by the lender and offered for sale as an REO. As all real estate is local, contact an experienced, local agent to guide you through your options. It will cost you nothing and save you time, money and some serious frustration.