Without seeing the floor, it has either swelled due to humidity/no heat or has had water on it. How old is the house? If it is a newer home chances are fair that it can be repaired to be serviceable. You will only know for sure once the heat has been on for 6 months or so.
Since it is a forclosure, it sounds as if you can get it for a low enough price to consider replacing the floor. Before you buy consider talking to a local refinisher and get their opinion and an estimate on what the repair/refinish will cost.