City and Municipality foreclosures - Do owners lose everything?

Does anyone know what typically happens when a city forecloses or takes ownership on a neglected house (not bank-owned)... do they pay the owner anything? There is a neglected building in a smaller town - I might be genuinely insane to even consider buying it but the city started foreclosure proceedings. I'm going to see if I can swoop in and get it for a reasonable price - as I could quickly be upside-down in it if I pay the owner too much.