You will EARN every penny you "save" by buying a foreclosure. The rules are different. The motivation of the seller is different. The timeline is different. The amount of work you will put into the deal, the house, the financing...the whole thing will be far more difficult than anything you ever imagined.
But you will not accept this. You will have to bang your head against the wall, over and over and over again before this becomes clear. Then you will do it all over again.
You will have to view houses with no appliances, carpet, paint, furnace, holes in the drywall, leaks in the roof, weeds in the gutters, water shut off, etc etc . You will have to see the worst that homeownership has to offer....graffiti, mold, feces, vandalism, roaches, mice, leaks, neglect, 'deferred maintenance". You will experience first hand the indifference of the banks who own these properties. You will get to see why nobody bought the house before it went in to foreclosure. You will see what how people treat a property when they know the bank is going to take it, the Sheriff is going to evict them and they feel like they have been screwed over by the system, ripped off by their lender and left twisting in the wind by a fickle real estate market.
You will see why many Realtosr will simply pass up the "opportunity" to sell you a foreclosure.
Ask yourself if you want to buy a house or if you want to buy a foreclosure. If the anwser is "foreclosure" you probably spend a lot of time at garage sales, on Craigslist and digging through piles of trash at the curb looking for bargains. You want something only if it is cheap.
The level of motivation, sophistication, patience and financial wherewithal required for a successful foreclosure transaction far exceed those usually found trolling Trulia for ad v ice. Good Luck. You will absolutely, definitely, most assuredly need tons of it.
The market determines price. You will get exactly what you pay for. Like that Monet you got at the rummage sale for cheap.