Would you offer on this house with foundation issues? (picture)

[Joe A.]

I found this house by Driving for Dollars/Direct Mail. However, it's going into foreclosure and is set to be auctioned in August.  It's next to a ravine with a creek running through it.  The retaining wall has collapsed which made half of the backyard collapse also.  That exposed pipe is the sewage line.  There are also two trees growing down onto the roof. Inside, it's a hoarder house.  Junk and trash piled up everywhere!  It would be a complete gut and remodel.  The best thing about it is it's in a very desirable area.  

I've run the numbers, and I don't think I can offer enough to cover what is owed to the bank.  In addition, I'm relatively a real estate investing beginner.  I don't want to bite off more than I can chew.

Thoughts?