Depending on how low you're talking, your strategy may be DOA. HUD home usually sell relatively close to the list price. Last year, 4,800 and change HUD homes sold according to the MLS. All but 52 sold for within 20 percent of list price and 138 sold for less than 90 percent of list. (1,451 went for more than 20 percent off original list ... evidence HUD negotiates through later price reductions rather than taking the hit on offers that are made.)
If you're serious about trying to make a go of it on HUD homes given the current inventory and HUD's history, we certainly can talk more. If you're thinking to go in at 60 or 70 cents on the dollar, there's not much point.