We all know that getting an amazing deal on foreclosures is possible, the house may need some work, but all in all you can get a house with instant equity if you purchase a foreclosure.  It is important to know that most banks will ask folks for their "highest & best offer".  That means, if you are in competition with other people for the same house, you may have to offer over asking price and leave out things like asking the seller to pay closing costs or carpet allowances, etc.  Remember to weigh the options you have.  You could be able to purchase another home for essentially close to the same amount after you've put in new carpet, fixed holes in the walls, replaced broken windows and make the necessary repairs.  Banks will not typically make any offers for repairs unless they are related to structural issues.  Be careful in dealing with foreclosures, make sure you have a good agent on your side!