All foreclosed homes (REO - Real Estate Owned- by banks) are usually sold by local Realtors along with all the other homes.
In other words, find a competent Realtor you can trust and get along with and (s)he will gladly take care of you.
I would also recommend you get pre-approved first so you can save yourself a lot of time.
Dave Tap Tapper
I understand how you feel because I just moved from "The Point" back to Half Moon Bay. What a special place. There are some foreclosures and short sales on the market in Pacifica and there are some traditional listings too. The "small home" inventory is unusually low because sales activity has picked up a lot over the past 6 months in that price range.
To answer question, plainly, work with a Realtor who knows the area and don't just limit yourself to foreclosures or short sales. For more information you are more than welcome to email me or call at anytime.