Do lot of people deal with foreclosure houses?

No. Very few know how to buy and sell foreclosure houses. And only fewer among them know how to find good REOs.  Visit here:
http://www.m3reo.com/

You need someone who has a track record in REOs, every Real Estate agent will say they are if you ask them but check their record, see how many they sold.  Find a office that REOs is their main business. That would be the one with the most signs in town in front of a foreclosure.

In many sections of the housing market we are seeing multiple offer and price bidding on bank owned properties. This is usually the first sign that the market has hit bottom and prices are beginning to stabilize. Waiting on the fence for better pricing might mean that you miss the bottom of the market and great deals on “quality” foreclosures. There is a  tool which finds best places to invest, identifies properties with the most value & will let you know if the property is really worth buying. Make appropriate use of these tools before final analysis as the tag price of the foreclosed homes for sale is still way less than the amount it could have been. Look into http://www.smartzip.com/info/score for more information