As with most towns at the moment, there are more foreclosures than normal. The factors listed in some of the other answers as well as a general "heightened awareness" of foreclosures because of the constant news about them, definitely makes foreclosures stick out. Foreclosures have grown in most communities over the past few years. Here in San Antonio, our foreclosure posting rate for 2008 is 23% higher than 2007 and has risen 41% over the past 5 years (2003-2008). Banks are doing what they can to get these homes of their books.
You mentioned the home on Quiet Ridge Walk. The community (Northchase) is close to my own home and I can tell you that based on my knowledge of the area, the foreclosure bidding price listed by RealtyTrac ($128,250) seems a bit high. There is currently a house on that street (7019 Quiet Ridge Walk) that is same size, bedroom, and bathrooms and is listed for $124,900. Now of course, it is possible that the homes have some major difference on the inside that I am not seeing by just looking it up on the computer (which is why we go look at houses when looking to buy one - imagine if we bought them all sight unseen!).
Buying a foreclosure can be difficult and a bit more time consuming that a normal purchase, but if you know what you're doing and have an agent on your side who's ready to take the time and work through the process, you can do it with less problems. The kind of foreclosure you mentioned however, is set for auction (it was listed as December 2, 2008). Auctions are a lot more complicated as you have to be prepared to purchase the home then and there if you make the winning bid and the people who are bidding on them are usually savvy investors that do this on a regular basis. I don't recommend it to anyone who hasn't done it before.
As others have mentioned, you can get a mortgage just like on a normal house. If you have cash, it can help a bank make their decision if they get multiple bids, as cash is "safer" for them than waiting for someone to arrange financing. Writing a good offer that protects your interests and gives the bank confidence that the transaction will go through to close is the key.
Hope this help! Any other questions, feel free to ask.