The first thing I would do is get prequalified or better yet, get preapproved by a lender. Once that's done, you will know how much home you can afford. Also, your lender can give you information on financing programs specifically for foreclosed properties like the HUD $100 down payment program.
Enterprise Mortgage Group
Winter Park, FL
The first thing you will want to do is find an experienced Realtor that has sold Pre-foreclosures (or Short Sales) and is familiar with the process. They should provide you with everything you want and need to know and assist you with getting pre-qualified for a mortgage. This is extremely important, as the banks that hold the mortgages on these homes, will want to make sure that if they do accept your offer, that you are able to complete the transaction.
Also- this will give you peace-of-mind to know that if you do find a property you like, you can comfortably know what you can afford.
This is not something you will want to do alone- if you are not familar with the process. The Real Estate business has been changing so fast in the last year, that even those of us who do this 24/7 have to constantly monitor changes in the industry.
Interview the agents- ask how many pre-foreclosures they have dealt with. A good agent will not be afraid to give you references.
All the Best to You!