If the market declines, then it may be a good time for you to buy. Over a long enough period of time, the average house price in modern history only increases.

The concerns for you in this scenario may be:

1. Has the property been poorly maintained for some time because the previous owner could not afford repairs after buying at a high price?

2. Has the property recently been poorly maintained because the owner knows it will be foreclosed on?

3. Will prices continue to drop, potentially putting you into the same situation as the current owner, or is now the right time? It's generally impossible to time the exact bottom of the market -- and what seems like the bottom may be far from it.