There are a couple things to point out when purchasing a foreclosure:
1. What type of loan you are obtaining (if not paying cash). Some foreclosed homes do not qualify for a FHA 203B mortgage, therefore you will need to either obtain a Conventional or a FHA 203K rennovation loan.
2. Regarding area, you will have to find a Realtor to research information on areas that you might be interested in. There are homes with value in all areas, so it really just comes down to where you feel comfortable buying.
3. You have to act fast! Foreclosed homes are typically selling very quickly and sometimes for above asking price.
Call me with any questions.
Micah Riley, REALTOR