You mentioned the property was abandoned in mid remodel. You may have difficulty getting a traditional loan if essential elements like a kitchen or bathroom are missing, or if there are other elements that make it temporarily uninhabitable.

If it is truly a good value it will get 5-10 offers in the first week on the market and sell for above asking price... foreclosures that are priced well do not sit on the market long at all. If it has been on longer than that you might be able to work the price to some extent but the longer you play the game the more likely another offer comes in. The question is what price you're willing to pay and how bad would you feel if it sold to someone else?

You can obviously make any offer that you feel is right. From my experiance, the banks don't move too far from their asking price. As you mentioned, it is already substanitially below market at the current price. Make your offer and see where the bank comes back on the counter.