Homesurfer is correct ...
When Dealing with REO, the banks expects near the fair market value. over the last 4 years the majority of the REO's have sold for more than the fair market value.
I expect the REO market next year to be red hot (should see at the end of the year)
hopefully Iam wrong - but as an investor I know it will be, so if we see 2 many REO's goes on the market, we might see some good discounts.
depending on what state that 41k seems like a second (if this is in high value states like Ca)
if you have little Capital why not go with Tax Lien investing
http://www.theforeclosuresinfo.com/tax-lien.html? Great income.