The homewner can do anything they want and how they want to do it prior to the confirmation of the foreclosure sale. Just because it went to foreclosure sale does not mean that the mortgagor was under water, there are foreclosures where there is equity and the owner just lets it go to foreclosure sale for what ever reason.
If you want the house, just make sure you have a buyers agent and that you have dear title and you understand the issues with the condition of the property. Also make sure you close before the confirmation of the foreclosure or you will have other issues to deal with.
Ot wait until it goes to foreclosure sale and bid with the other people looking to purchase it after foreclosure.
First Weber Group
Certified Distressed Property Expert
Joyce, The best place to search for a foreclosure would be on Trulia. In the home search foreclosure is a choice. Another good site is http://topix.com look under real estate. Even homes with Notices (pre-foreclosure) are available.
I strongly agree with Melinda's first answer. Take some time to research foreclosures. If you have the required skills this may be an option. Another choice might be "short sale" properties. Most will have less damage. Expect months of negotiating and waiting for either.... more