I understand the foreclosure process, but am not an expert in the field. Why? Because in Cupertino, where we have had appreciation averaging 6-8 percent a year over the last 9 years, it is very rare (extremely rare) to find a home in forclosure in the area. Did I mention that foreclosure inventory is miniscule, tiny, bordering on non existent in great neighborhoods. And if you do, it has been so heavily leveraged (1st , 2nd, 3rd deads of trust), that you can't get it under market. Why waste everyone's time hunting for the golden goose when it doesn't exist. Try looking to the south valley, the east valley or the central valley, that's where the majority of foreclosures are.
I do know of a foreclosure property in Los Altos Hills... Its got 4 acres (only half acre flat), 2500 sf house (tear down), bay views (nice), yours for only 3.2 million......current market value....2.3 million. What a deal!