How far below Value are Foreclosures selling for in Ann Arbor Michigan?

We are looking at purchasing a home this month. We have found one we like and I just found out today that the bank foreclosed on it for 75k and they have it listed for 229k. The area is a good area and in a strong market they may get it, but that's not the case. There is work that needs to be done, it's not in turn key condition by any means. The layout is a little weird, the carpet needs replacing, the fireplace needs restoring, the outside needs some serious paint, there's not even a mailbox or house numbers! No appliances or even shower heads in the bathrooms. It's a 2200sqft home with air and heat, 4bdrm, 2ba. How low of an offer would anyone suggest we throw out there? I had an idea until I learned the bank didn't have to pay hardly anything to get it back.