In our area, we can search the listings for tax foreclosures that are auctioned off on the courthouse steps. It is not a game for amateurs, though; you need to be able to do your own title searches, lien research, etc. You need to self- evaluate values after repairs because many foreclosures are in need of major repair to be habitable. There is also considerable competition from professional flippers.
Real Estate is highly local and it is cyclical. If the market you are looking at is "hot", you will also find the foreclosure market is hot.
Personally, I would avoid a hot market. I'd either look elsewhere or sit it out.