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The overall "feeling" is that it is neither historical fact nor legends. It is a book of stories, many of which have real events that lies behind them, and many that do not. There is a discussion about exactly what is true, though.
The well known stories such as the flood and the exodus generally have no or little evidence behind them, and often a lot of evidence against them. In general, there is very little archaeological evidence, if any, for the stories in the Bible. Attempt to prove that there was a united kingdom under King David etc has been inconclusive, for example.
There are however historical documents that corroborates some things in the Bible, mainly wars and sieges by Babylonian and Persian kings. Many of the kings mentioned in the Bible have left their own written texts and in some cases these agree with the Bible on the events.
See also: http://en.wikipedia.org/wiki/The_Bible_and_history