I'm looking to buy a condo in downtown Chicago, but unfortunatley with the prices the way they are it seems that there is a very slim possibility of that happening. My real estate agent suggested keeping an open mind about forclosed properties. Does anyone know of any downsides to this? Let's a say a property was originally sold for 400K and I bought it for say 250K would I pay taxes on the 400K or the 250K? Or maybe I'm asking the wrong question? Just trying to find some legal opinion on this as well and sound financial advice.