There are some great opportunities. You just need to make sure that you have your bases covered with a great agent, home inspector and attorney. I have worked with several buyer of where we were able to uncover title issues, condition concerns and more but you really need to have people working hard during the inspection phase. We were able to find it, address it and have it cured before the buyer stepped into a mess. Also keep in mind that many of them will have a shorter inspection window per the bank docs or Fannie Mae docs so know the fine print.
If you are buying any home, especially a foreclosure or short sale through a part time agent only selling 4 or 5 homes a year just make sure that you know what you are getting into.
If I can help just let me know.