Pre Foreclosure?

[Taylor Vallies]

I'm new to this realm and am trying to understand and digest process, procedure and terminology to help me on my venture in investing. 

Here's my question, or scenario. If a lender has recently foreclosed on a home, and foreclosure estimate is double the auction listing price, does this mean that base line purchase price begins at that and can run up and past foreclosure estimate? My question may be hard to understand but I'm sure I can refine it once I get questions to my question. Thanks.