I see that you are after this particular property. I just answered a previous question that you posted. This listing on Trulia only shows the amount of the loan in default. The last time I checked these homes are going for far more than $350k. The property is most likely valued at much more. Therefore if it is the $350k number that is attracting you I would disregard the property. It sounds like you need to get some information on how this all works.
Call me if you have any more questions.
Coldwell Banker Star Realty
BRE LIc #01456982