http://www.boston.com/realestate/news/articles/2009/02/10/mass_sellers_find_sweetener_needed/

Despite the flood of foreclosed homes hitting the market last year, only 3 percent of buyers said they bought a bank-owned property, the report said. More than one-third of the buyers who were surveyed had considered buying a foreclosed property, but couldn't find the right place or were put off by the process.

Here's where the media gets it wrong......3% of homebuyers in the survey bought foreclosed homes.....that is not very far below the actual percentage of homes on the market for sale that are foreclosed.  See my post here that shows less than 1% of all homes in Massachusetts have been foreclosed.