The local foreclosures are all over the place depending on the lending institution.
I've seen homes priced $10k+ over what a normal market would bring, and they let them sit on the market for a months without a price drop.
Then there is another company that starts out cheap, and drops the price every 3-4 weeks until it sells.
I've made an offer on one in the last month, and the seller wouldn't look at anything below full asking price. My offer was low, but it had hit the 90 day mark and they are asking 3 bedroom money for a 2.
The banks would rather sit on these and hope sales/prices return. They don't write the loss off until they sell. If rates were to go up they are going to be in a bind to move these.