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When you are looking for distressed sales, in my opinion the REO market is a good place to look.  REO's are real estate properties owned by the bank, after foreclosure proceedings.

Prior to foreclosure sellers often try to sell their homes as a "short sale" meaning they attempt to sell it for less than the total loan amount owed to the bank.  Sometimes that fails prior to foreclosure starting.    Also, when a buyer attempts to offer on a short sale they need to be ready to be patient, because banks sometimes won't respond for 30, 60, or even 90 days to their offer.

Once foreclosure occurs, you can bid on the home at the court house, but the lenders will usually make a minimum bid for what is owed, so again, you may not want to bid that high.

But once the property becomes owned by the bank, the bank is motivated to get that liability off their books and they proceed to a publicly listed REO sale.  This process is more straightforward than a short sale and you are likely to see good values.