Making A Foreclosure Offer

[Jason Hodges]

So I'm a newbie and ready to make my first offer.  I'm interested in flipping a few homes over the next few years to increase my cash and will then change my strategy to buy and hold.  

I found a home on Zillow saying the bank acquired a property for $2500 and then see that the foreclosure estimate is 55k.  How should I approach a situation like this?  Does the $2500 acquisition cost reflect a possibility of the bank taking less than the 55k?  Or does this foreclosure estimate reflect what the bank is asking?  I wanted to post and get your thoughts before moving forward with an offer.

And FYI, neighborhood homes are going from 50-75k.  Based on bed&bath combo with square footage, I believe this house will sell for 70k.