Here’s an article from EHOW.com on how to buy a foreclosed home.

When you buy a foreclosed home, you’re cashing in on a home someone was no longer able to pay for. Foreclosures are difficult–both to locate and to execute the transactions–but the potential to turn them over for a tidy profit may be there.

One of the more salient points in the article is this step, which is very obvious and “common sense” but some folks hardly pay attention to:

Have your agent check nearby or comparable homes to see if the asking price for a foreclosed home is, in fact, a bargain

Some foreclosed houses can no longer be inhabited because of age or would cost too much to repair. Removing it and building a brand new one would be more economical. Sometimes you’ll wonder why it’s a bargain – maybe because the house no longer has value, and you’ll only be paying for the value of the lot.

It always pays to know more – read: How to Buy a Foreclosed Home | eHow.com