I did this in the 70's and did quite well as a side business , things have changed - there are more scams about foreclosure houses, I suggest you find a broker who has a real-estate attorney (on staff, or retainer) to work with, most agents do not have the skill or experience to do a good job, and can cause headaches during the process.
FWIW, most banks are not in the RE business and want to get rid of the property, and not see it return, so they will repair and update most of the home (they need this to try and get their money back out of the property, so there is not much of a savings.
If you find something, and your broker and attorney say ok on the paper, get a good property inspector (one who does not market "levels" of reports - they should be detailed and written (much like a good boat survey)and be there with the inspector and bank rep, ask questions and have the rep move things around for the inspector.
Create an offer containing all repairs to be done and re-inspected before closing –
You may not get a low cost house, but you will get a good one.
Unless you have a lot of money and a construction crew, do not buy from a foreclosure “flipper” – they often market themselves as full service real-estate agents or a FISBO (if a you find a good deal use a RE attorney or broker who has experience- too many hard to find liens.
Good luck
Also the state rules on home inspectors are a joke -
