If you are looking for a great deal, it does not have to be foreclosures, as long as the seller is motivated then you will get a good deal. Foreclosures are no different than any other homes on the market. there are foreclosures that are in beautiful condition and some are not. If what you are looking for are good deals, I have answered some of your question In another posting. I have pasted it below:
In this market the only way you can do it is to buy low and sell low.
1. I search for homes that have been on the market for over 100 days.
2. I do the comp to narrow down the ones are at least $50k below market value (if the the seller is already lowing the price that means they are motivated).
3. I use 90 percent of the market value as the after repair value (90% because the market is coming down too quickly, I need to be sure that my flip will sell. Since it is lower priced and remodeled it will stand a much better chance.
4. I figure out the maximum offering price by subtract these expenses: acquisition, repair, sales, holding from ARV
5. I offer with this maximum offering price.