First, the $40,000 is not a sales price, it was the amount in default, most likely a second lien and would still not create a situation where the home was for sale on that event alone.
As is clear here, you may have been misled into believing you could buy the home for this price? Not ever going to happen. Even if it did come on the market, the price would be just around $200,000. If you're looking for a home, there are ways to get ahead of the curve.
You'll need a good buyer's agent to help you find a home. Or you can keep following realtry trac ads and spin in circles. Good luck.