Foreclosure properties are in great demand by both real estate investors and users who are looking for value in below market prices. Depending on a number of market factors, those low prices can represent substantial saving to most buyers.
So how do you go about finding foreclosure listings? There are several places to search:

Asset management Companies
Contact asset management companies and request information on their foreclosure properties. Most lenders outsource the management and marketing of their real estate.

Government Agencies
Get in touch with government agencies such as HUD, FDIC, IRS and others to enquire about the REO properties they have for disposal.

Realtors and Real Estate Agents
Some foreclosing lenders arrange to have their properties marketed by national or local real estate agencies. By contacting your real estate agent, you could have access to some of those listings. However, it should be noted that foreclosure listings are in many instances closely held by the listing agent/broker to avoid commission splitting.

Online Foreclosure Listing Services
A number of websites offer online searches for foreclosure listings. They have simplified the job of looking for foreclosed real estate by consolidating listings from many sources. This not only saves a lot of time and energy but also provides a standardized listing presentation which can minimize confusion and facilitate comparisons.

One thing to keep in mind is that not all the foreclosure listing information you get from a source is accurate and up-to-date. Over time, a listing may be taken off-market, the price may be reduced or the conditions of sale may change. Also don't be afraid to submit a low offer, as you never know how a motivated seller will react. There may be many reasons why a seller lists the property at a certain price and then turns around to sell it at a much lower price.

The Foreclosure Process - Wikipedia