Since the beginning of this year I have shown several hundred foreclosure homes, only 2 of those could one actually live in.
My perception is, foreclosure homes are generally not a bargain.
I always prepare my clients before viewing a lender owned home, "this will not be pristine, bank owned homes usually need work" etc. Nothing I say, can actually prepare them for what they are about to see.
Lender or bank owned homes rarely have appliances. I have seen them without sinks, tubs and water heaters. Most often, there is no fridge, washer, dryer. Carpeting needs to be replaced. There can be holes in walls, broken doors and missing windows.
The nicer ones, in "move in condition", go quickly, an often for more than asking price.
If you are handy, patient, have extra cash, then fix up is for you.
If not, then please buy a home from a home owner, negotiate a fair price and move in!

To see foreclosure homes vs. private, visit my website for FREE Metro Denver MLS Home Search