Less than 8% of the homes currently For Sale on Whidbey Island are foreclosed properties (also known as bank-owned properties). So far in 2010, foreclosures make up only about 17.5% of the homes sold on Whidbey Island (compared to 90% in some other markets!).
There are definitely some good deals to be had: Foreclosures here on Whidbey Island have sold for an average price 30% below that of homes sold that were not in foreclosure. One of the downsides of buying a foreclosed home is that it may need extensive repairs or remodeling, and some foreclosed homes are in such poor condition that getting financing is very difficult, if not impossible.
If you have the money and time to put into repairs, there are some great foreclosure opportunities available here on Whidbey Island.