Buying a foreclosure home is the best way for buyers to get a deal in this market. In Tucson foreclosure homes seem to be 1/2 of the market and there is a ton of competition between the banks to offload their inventories. SO it all adds up as a good situation for buyer. (Not so good for sellers unfortunately)
The key to a foreclosure purchase is to have very good due diligence completed by your agent, inspectors, title company etc. As a buyer don’t be scared to spend some money getting good highly qualified inspectors and specialized inspectors for items you believe need additional investigation IE: mold, plumbing, and/or electrical. If everything checks out look to save 10%-15% vs. what that exact same home would sell for it if it wasn't a foreclosure. (Although to be prepared to put about 5% of the purchase price back into the home in repairs as most foreclosures need "TLC" on a good day and a whole lot more on others..)