This is actually good news for the buyers and the sellers, because the sellers would rather deal with a buyer negotiating hard than end up being foreclosed. The legislature last year didn't understand that, and it most likely resulted in a lot more foreclosures than would have otherwise occurred.
When a home faces foreclosure, and the date is quickly approaching, the bank tends to take less for a short sale aka pre-foreclosure. If the home is not listed, and the owner is not willing to do a short sale, they can stay until they are removed.
If you are interested in pursuing this further, please do not hesitate to contact me at 425.765.4432 or firstname.lastname@example.org.
The foreclosure notice doesn't implictly effect the value of the house beyond what the current market value might be. The house can still be sold in a possible short-sale arrangement if the lender/investor is agreeable. But if the listing price is above the owed mortgage(s) and in-line with current prices then that may not be necessary. If the home is actually foreclosed its value is still relevant to the current maket conditions though an institution may be inclined to 'cut a deal' in order to get the inventory off their books. At this point, the foreclosure is only significant to the current owner and any possible tenant at this point. If you are seeking to make an offer on the property, it's unlikely you'll cut an incredible deal unless the proper market valuation says so. You can contact me directly 206-218-7653 or visit my website for any further information.