If you're looking for HUD Homes, your best bet is to be set up on alerts as many of them come on the market and are quickly jumped on. It also would be a good idea to get pre-approved by a lender as if you want to make an offer on a HUD home you need to have a pre-approval letter ready to go to submit with your offer.
If you need help or have more questions, feel free to let me know.
As Matt pointed out already, this home is a FHA foreclosure being sold by HUD. Banks and lenders do not desire to be in the real estate business as a rule of thumb, so almost 90% of the time you will see pricing be the #1 factor that sells homes needing repairs and other items normally found in a home.
If you are interested in searching foreclosures w/out paying the monthly fees, you can find them located here for Bexar County and surrounding counties. http://www.eXposedHomes.com. We also have a list of what kind of deals may be much more appealing than foreclosures if you are interested as well.