The Munstermen were guilty of committing a number of errors at Allianz Park as they fell to their worst European defeat since 1996 and will now likely exit the competition before the knockout stage for just the second time in 17 years.
The loss rounded off a difficult European campaign for the GUINNESS PRO12 side, which also saw them lose to Clermont twice last month, and Foley admits he was disappointed with his team's display.
"It is very frustrating and very annoying to be out of the tournament so early," said former Irish international Foley.
"We came here to win the game and came here to put in a good performance. That was a team that could have reached the knock-out stages and we didn't produce that.
"We weren't allowed to play our usual game. Saracens came out and dominated the big areas - ball carrying, the ruck area and the scrums.
"We were dropping passes and were passing the ball to fresh air.
"There is a lot of character in the team and a lot of good players. It is just unfortunate that we played like we did today.
"We've got Sale next week at Thomond Park and it is important we put this defeat to bed and turn up in front of our home fans and give them a performance that everyone can buy into."
Chris Wyles opened the scoring for Saracens as he dotted down early on before Chris Ashton added a second try.
England fly-half Owen Farrell added the extras to both and also kicked over three penalties while Ian Keatley scored his penalty attempt as Munster trailed 23-3 at half-time.
Ashton grabbed his second of the afternoon after the break before Denis Hurley gave Munster a foothold when he crossed the whitewash and Keatley converted.
But it was to be nothing more a consolation as Farrell kicked over a fourth penalty to seal the win.
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