Buying a foreclosed house

[Anthony Caleca]

hello i have a question about buying a foreclosed home. So my finances sisters house is getting foreclosed and they don't care to much (weird I know) but it's on a nice piece of property on a quiet residential block and beautiful neighborhood. If I wanted to buy the house how can I go about getting it? 

Would I call the bank that is forclosing the property and see how much the mortgage is and how much is owed, and see if I can possibly satisfy it and transfer the house to my name. Is that how it works I never did this before.

Now another thing is from what I hear they  owe $275,000 to the mortgage company but the house has an appraised market value of $435,000. Would I be able to pay pay the mortgage company the $275,000 they are owned and pretty much be left with a house that has $160,000 "built in equity" or would I have to buy the house from the bank based off the market value

PLEASE HELP because I love the house and if it is possible to buy the house for the $275,000 that is owed to the market instead of the market value of $435,000 that it would make for an awesome investment in my eyes.