There is indeed a variety of specialized programs to help homeowners buy foreclosed real estate.
One of the most widely known is the U.S. Department of Housing and Urban Development’s Good Neighbor Next Door program. Qualified persons in certain professions can buy foreclosures owned by the Department of Housing and Urban Development (HUD) at 50% off the list price.
Only certain homes are eligible. They are all in HUD-designated revitalization areas. You must live in the home for thirty-six months, but you are free to sell it or turn it into rental property after that. For more details, call the local HUD office listed in your telephone white pages.
State and local governments may sponsor similar programs for their own foreclosed or seized real estate. The HUD housing counselors located in your state can help you with information about other programs.