Trulia.com has house prices on a map, and you click the "forclosure" button on the left to see what's bank owned. You can also check the price of homes recently sold, and the history of the sales price on that home.
Googlemaps has street view for all of Southern California, where you can virtually "drive" down the street looking at the neighborhood.
Forclosures have gone for $200-$250k for a fixer-upper, but the banks are buying them, making repairs and putting them back on the market in my area (Rancho Cucamonga).
The problem with forclosures is that usually you can't inspect prior to bidding. Frustrated owners losing their homes are thrashing them, and selling upgrades like marble countertops and appliances before they go.
$250k may be possible for a condo/townhome, but the neighbors in low-priced complexes are questionable.
There are bargains, but mostly on newer homes (2004 and newer) in Temecula / Murrietta where the builders sold with flaky loans, and entire developments are ghost towns.
Another option may be mobile home parks, but the pad fees are at least $500 / mo.
Anyway, check the sites I mentioned, and judge for yourself.
Good luck!