Its too early to talk about foreclosed property in Britain, but there are opportunties abroad. The best markets I think are Japan and the Philippines. My partner and I bought in Japan and the Philippines. Japan has not had the same credit explosion as the USA & other western nations. Its got really low interest rates, but actually growth in lending (the most important issue) has been modest.
In the Philippines they are benefiting from call centre growth, stronger food & mineral prices, repatriated earnings from Filipinos abroad. They are only being hurt by strong oil prices, but then this has been offset somewhat by a strong peso.
I liked Japan as a yield story and with the possibility of future reform. The Philippines is a 'growth story' with the potential to be a faster growth story.
We bought land in a satellite city of Manila for P800/m2 ($US20/m2) and a dormitory in Japan for $US28,000, just 1hr from Tokyo city. Paradoxically Japan would have to be the cheapest place to buy. I've seen properties for as little as $US10,000 in the countryside that would make great holiday houses.

Interesting comments - how difficult is it to move money in and out of Japan? I would have thought with those low interest rates there would be significant restrictions?

Hi Brian,
Japanese interest rates are low not because of regulations I think so much as 'government pressure' by the central bank upon institutions and fear for household investors. Japanese people tend to have poor financial literacy. For foreigners its easy enough to transfer money in & out, but of course you need a bank account.

I would personally love to know how to borrow money from Japan, if I'm able to reinvest it overseas.

I suspect there would be significant hurdles in doing so, though.