Mixx
Realistically you are facing a pretty firm headwind on buying an REO as an FHA buyer. Buying directly from the bank is close to impossible though I know someone that pulled it off because it was a smaller bank, he was a commercial RE broker and he was able to reach the REO asset mgr at the small bank and do the transaction himself as a licensee for them. he also had 20% down.
All the foreclosure sites are no better than fair as far as accuracy. Throw in the fact that 70% of the trustee sales get cancelled/postponed and you are asking for an exercise in banging your head against the wall.
Best advice is narrow down where you want to be and find good help in that area from someone who knows what is going on there.
