There really shouldn't be foreclosures hanging around the market, they should already have been sold by lowering the price. Of course, the banks can't allow that to happen because they are essentially bankrupt and being propped up by the Federal Reserve. Lowering the price and moving merchandise would require the banks to book tese homes at their real value.
So now you have a situation where the banks can't maintain the homes on their books and listing agents don't have the funds to maintain them either. This is why you have people living in homes without paying rent for more than a year, the bank at least has a property that has maintained a livable status, though perhaps having drug down the rest of the neighborhood.