You've fallen under the misconception that a foreclosure is automatically a "good deal". Some may be, but many are not. There are two ways to buy a foreclosure, one is speculation and incredibly risky and the other is buying a listed property.
Buying at auction requires 100% cash or a presetup, short term, high rate, hard money loan. You do not get to preview the homes at an auction, you don't get to inspect them, request repairs or give them back if you buy a bad one. This is only the beginning of the risks involved. You'll be competing with full time experienced professional investors who will gladly let you over bid a home they don't want to buy, to get you out of the way for the ones they do.
Buying a home that has gone through foreclosure and is listed with an agent is a more conventional process. These homes can be viewed, inspected and if necessary work can be done if required by your inspection. Conventional financing can be used too. You'll still have to compete with other buyers looking in that price range, and the banks who own them still want top dollar.
My suggestion is, especially if you are looking for a primary residence, find a great local agent with experience with all types of properties, including bank owned, and consider ALL the available inventory. Sometimes a regular home can be as good or better deal for you than a foreclosure, but if you don't consider everything, you'll miss it.