If a property is indeed "foreclosed" the home is in the hands of the lender. Banks are in the business of making loans and holding money for others, they are not in the business of owning homes and renting them out.
The "foreclosed" scenario likely evolved through someone not being able to afford the loan they were given. Is it likely the lender would welcome the opportunity to take great risk and repeat the previous experience. Lenders are taking the gamble that their borrowers will repay their loan in full....
Foreclosures, however, raise some concerns. Many lenders will require a certificate of occupancy i.,e. pass all codes, etc. in order to close.
But many REO properties are sold "as is" and require renovations to bring up to codes, and getting a rehab loan with not so perfect credit could be a challenge.
Consult with a mortgage lender who can evaluate whether or not there is a loan program available for your case.
If you can qualify for a loan, you can. The first thing you should do is contact to lender to see how much of a loan you qualify for. This will tell you the price you can purchase at - whether a foreclosed property, short sale, or standard sale.