This is why a good home inspection program is so essential with these purchases. Inspections should minimize the chance for problems but certainly can not be trusted to eliminate them. The rule of thumb for making these types of purchases is: inspect, inspect, inspect and them inspect some more!
Besides the many fine answers below keep in mind that the history associated with a home
such as upgrades, any corrective work done is unavailable, as the Seller is a Bank and has not lived in the property.
Furthermore, in 10% of the cases, the property is stripped of plumbing, heating, fixtures, stoves.
Generally a Bank does not lend if a Stove or Home Heater is not available.
I always recommend you hire a good inspector this way you know what repairs are necessary and decide to proceed or cancel and request earnest money be returned.