Just remember that hundreds of people are on listing alerts in that neighborhood at a given time, so the "steals" are no secret. They will go quickly and have multiple offers, which may end up raising the price of the home. And it may have serious defects if the price is ridiculously low. I still LOVE foreclosures though because of the opportunity to get a great deal. However, don't rule out short sales or traditional sales. Traditional sale properties have had to come down in price because many of the comps are distressed . As a result, any property can be a good deal because EVERYONE has a reason to move. Divorce, estate sales, etc all can be good deals.
That's why it is important to have a real estate consultant that can work with you to get you the best deal. We can find the "steals" that most people may overlook.