Hi,
Start by renting a storage facility and declutter! Make the house look bigger than it is by having less stuff in the house. that includes furniture. If you have a bed, two dressers and two night stands in your master bedroom, put one dresser and a nightstand into storage. This will open up floor space. Organize the closets to make them look roomy, not stuffed. Keep toys to a minimum. Remember putting them into storage means you get them back! In the kitchen, keep the counters clean and clear. If you have a couch and love seat in the living room, take one out and put into storage. Think floor space. If you have multi colors in rooms, paint them a neutral color (that part stinks - I know). Keep your yard, appealing. This would be for both front and back. People want to imagine their own stuff in your house and how it will look. As far as buying a foreclosure, depending on your area be prepared for competition when bidding. Also, be prepared to not have any repairs fixed. Your realtor should make sure when you do put into your bid, you put in the offer (even since the sale will most likely be AS-IS) that you can pull out after the inspection if something major is wrong (IE: cracked foundation, problems with water pipes, etc.). Sometimes, the bank does fix the problem if it is major and you are the only one who has bid. Also prepare yourself for a shock when you do go into a foreclosure. We looked at so many homes. Some foreclosures were in good shape, but some where just unimaginable. Such as, the interior walls were torn out, the carpeting was horribly stained, light fixtures were missing, smelled like they let their pet do its business in the house. Just gross stuff! Another option, which would be a little more, but this is what we did, would be to buy from an investor. They bought our house we own now as a foreclosure then they came in, cleaned it, painted it, put in new carpeting and appliances (other than fridge, washer and dryer) and put it on the market. We were able to haggle on the price and get things the inspector found wrong fixed. It was much easier. Also, have you priced out putting an addition onto your house? It might be cheaper to do that, then sell right now.
All the best to you!