In the current housing economy, it's tempting to buy a "short sale" or recently foreclosed home, especially one that was built during the recent housing boom and is being offered at a bargain-basement price. But that strategy is full of pitfalls and potholes. It's well-documented that owners of homes in foreclosure tend to neglect their property, knowing there's no point in maintaining it. They are likely distraught and distracted at the prospect of being evicted from their home, and understandably might focus on more important things than fixing the gutters or repairing a leak.
In the current economy, it has become fashionable to define "value" as simply the lowest price among new homes. But doing so discounts the value of providing a high level of construction quality, as well as service, before, during, and after your new home is built. This may not be in your family's best interest.