In looking over the recorded documents, it appears that the Notice of Trustees sale has been rescinded for now, meaning the foreclosure process has been delayed. It is possible that the current owners are working with the bank on a loan modification. I did not see any Lis Pendens filed on the property. If the owners are attempting to negotiate a loan modification, most banks will usually only grant the request if the owners are living in the property, which it appears they are not.
I do agree with Mr. Shapiro, I'd look for a property with less issues, although it may very well be OK. Your best bet is to contact the agent who has put it on Trulia, and ask them a lot of questions about the foreclosure/loan modification process the current owners may be going through, and where it currently stands.