Elaine,
It has been my experience that bank owned (foreclosure) properties are "easier" to purchase than short sale homes (homes that the bank would agree to accept less money from the owner than is owned on the home). You still have to go through the process carefully, and be prepared for more paperwork to review as banks will often want to use their own contracts and forms.
Remember that this home is most likely 1 of many homes, that the bank is dealing with. The home is more tangible for you as you've been there and you want to buy it. For the bank, it is just numbers on a sheet of paper.
Agents shouldn't steer clients away from Short Sale or Foreclosure homes. It is an agent's job to explain the process and issues with any home purchase. If the buyer wants to move forward you should represent their interests.
One reason that agents may want to avoid these homes is that the commission paid by the bank may be less than what is paid by another seller. For the agent, the work and paperwork is still the same, or more labor intensive. - Thu Jul 24, 2008