We bought a foreclosed home from Fannie Mae last year. Bear in mind, if this is a typical foreclosure, you will end up fixing everything that's wrong yourself, even if you find something wrong the bank isn't likely to fix it before closing (that's what they mean by "as-is"). So it's really a matter of knowing what you are getting into. The home we picked was winterized, and they wanted $150 to turn the water on for our inspector, then $150 to turn it back off. Our home inspector actually pumped up the plumbing with an air compressor at the beginning of his visit. It held air for a couple of hours, so he told us that we were probably OK. If it had leaked, we would have shelled out the $300 to see what was wrong. The house overall was in great shape, and we had no reason to believe the plumbing was bad, so we decided to take the risk and go ahead with the closing. We had the water turned on when we moved in. A lot of the faucets leaked or acted funny for a week or two, just because they had been dry for so long. Other than that, no problems at all. So I guess it depends on the overall condition of the house you are considering -- and how much risk you are willing to take.