Mortgage rates are fluctuating all the time right now, and are currently in the low 6's for a 30 year with no points. (2/17/08)
The property you are interested in has been on the market for 101 days so far, and they haven't reduced the price during that time. That tells me the bank may want an offer close to list. They are owed over $250,000 on the property according to public records, so they are going to write off a significant amount of money. But banks want these properties off their books, so make an offer (after seeing inside).
The bank may or may not let you de-winterize the property before having it inspected. If they do allow it, they normally want you to use their contractor to do the de-winterizing, and then to re-winterize it when the inspection is done. This can cost you $500-$1200 that will have to be paid before the inspection, and this is on top of the cost for the home inspector himself. I'm not trying to discourage you, just want to make you aware of the costs involved. There are some great deals out there on bank owned properties, and this just may be one of them. Just make sure you do your homework (that's what your agent is for).
The only way to find out if a price will be accepted is to make the offer.
I recommend that you schedule time to see the inside of this property. You may also want to bring a licensed home inspector if possible. When houses are winterized, the water is removed from the pipes by a plumber, and the water to the house is shut off. Bank mortgage rates depend almost entirely on your credit score. I have recently heard of folks with good credit obtaining rates as low as 5.65 on thirty year fixed rate "conforming " loans. A good mortgage broker would be able to answer this question for you.
As Jim said, we are not trying to scare you but knowing what to expect will eliminate any surprises that can be stressful.
As a buyer's agent, I always make it a point to sit down and discuss the entire process involved in buying short sales and foreclosures since it is such an involved process. It can be rewarding in the long run though!!
Good luck! Haverhill is a great place to live !