If the property is in the process of foreclosure proceedings the seller maintains control over what he or she sets as the price.....if a potential Offer comes in lower than what is owed(mortgage), the Bank will have to approve the funds/terms in the settlement. If the property has gone through foreclosure and a sheriff's sale and now is owned by the Bank, the Bank will determine the list price/adjustments. Professional Realtors make recommendations for price listings/adjustments based on analytical facts in the market. If you are interested in a Foreclosure/Short Sale I would definately recommend you seek the assistance of a Professional Realtor with experience in this Field.
The Birschbach Team
Keller Williams - Madison
If you don't have a realtor, considering consulting a one for assistance. Trulia would be a great place to start.
Best of luck to you!