Foreclosed homes are listed by real estate firms the same as regular resale homes and you can view them for sale on all of the typical websites that you look at for non-foreclosed homes for sale. You purchase a foreclosure the same as buying a regular home with respect to getting a mortgage..etc.
The main difference is that typically they are sold as-is. So, if you purchase a foreclosure, you can still get the inspections done (property, termite...etc) but it is usually a take or leave it situation.
One drawback with foreclosures is that many of them need repairs in order to make the home habitable. If a repair is required to get the mortgage, you may have to purchase the home using an FHA 203k renovation loan.
A major drawback with foreclosures is that typically all of the utilities are turned off. It may be up to you, the buyer, to get them turned on for the property inspections. This is a hassle and may cost you money but a good agent can help you with all of this.
I hope this is of some help.
Prudential Patt White Real Estate
Lehigh Valley, PA