Foreclosure homes go for market value. The process is very streamlined these days. Once reclaimed by the bank, the property goes through a BPO process (broker price opinion) and hit the market back at market value. In fact I would say there is less value in a foreclosure because unlike a regular sale... the banks are not flexible on terms or price, they do no termite remediation, your contingencies are passive and not active (i.e. your contingencies are removed by the passage of days rather than you releasing them with your signature). If foreclosures represented a meaningful discount in price, these poor terms might be attractive, but given they go for market value... you should only seek a foreclosure if the specific property is the one you've set your heart on. Otherwise, standard sale is a much more negotiable process and less stressful/buyer friendly in my opinion.