There are some great deals on foreclosures in Santa Cruz CA. Being a coastal community, Santa Cruz, has not been hit as hard as some markets with foreclosures but we have not been completely spared from the hardships of the U.S. economy. There are a few terms used to describe a home that has been foreclosed; Bank Owned" and REO meaning "Real Estate Owned." Where the term REO originated I do not know... maybe I will Google it.
A foreclosed home in Santa Cruz can be a great deal but in many cases be ready to get out your tool belt. Foreclosed homes in Santa Cruz typically have deferred maintenance meaning that the previous owner did not keep up on general maintenance of the home. I am not suggesting you don't buy a foreclosed home but make sure and obtain all inspections so that you will know exactly what it will take to make a house your home.