Synthia, chat with your mortgage broker for a credit restoration program that revolves around analysis and reapir of your credit report and educating you on how to raise the score. If your broker doesn't have this knowledge on hand, I can provide a referral for you - contact me at the link below.
Right now, it's extremely difficult for those with damaged credit to borrow money. Things will ease up eventually, but the lenders are being very strict on who they are lending to. In addition, the underwriting guidelines are "in flux" and so pre-approvals are being re-approved throughout the purchase process.
Foreclosures (pre-foreclosure) is a tough business. I know it well. Dealing with people in distress can be emotionally tolling and has risks - although the activity can sometimes be well worth the effort.
If you are thinking about buying at auction - think again. You need to come to the auction with cashier's checks and you will (mostl likely) not have a chance to see the house before you buy. Not recommended for anyone but experienced investors.
I hope this all helps!