That's like asking, is Blue a good color? Some bank owned homes are fine, others are in terrible shape but are priced to reflect that, still others may be in good shape but overpriced. An experienced agent can assist you in determining which case may apply in your home search.
Some may be pretty good deals, but so are some private sales. The bottom line is you should consider everything on the market and when it comes to some, be more careful than you may have to be with others. Short sales may be worth avoiding altogether.
In 100% of all purchases, you need a solid agent on your side, a great lender to get pre-approved with an assist you in getting to final approval and a great inspector who can see beyond the basics. Often your agent can assist you in finding the others.