for your situation- if you're not getting a great deal, walk. If you are, be prepared for a surprise or two, and some stress.
Make sure that you agent understands how to help you read an REO addendum or speak with an attorney who can.
(1.) Inspection clauses that restrict a buyer's ability to perform due diligence in an efficient and timely manner. Less-than-clear instructions about utilty turn-on for inspections is a major culprit in delay.
(2.) Penalties for missing a proposed settlement date. Sometimes the bank or the bank's title company causes a date to be missed and there is reckoning with disagreement about the reason for the delay. Sometimes the penalties amount to $100/day or more.
(3.) Banks often specify the title company that will handle the transaction.
Attorney review of bank documents is advisable in all circumstances.