The lowest home prices now in the Palm Beach County Florida area (where the home you linked to is in) are foreclosure and/or Short Sales.
If the home is bank owned, the approval time is much less than that of a Short Sale. There is nothing wrong with buying the homes, especially if you get a good deal.
Some foreclosures, however, do not allow you to get a mortgage. They must be all cash deals, and they are not "habitable". This is only a fraction of homes, as most homes are ok for mortgage approvals. The MLS listing will state whether or not this is a requirement.
Feel free to search my website for more homes for sale, as theres an IDX MLS search: http://www.LindaBassitt.com
or call or email me for a list of homes matching your criteria.
Linda Bassitt, P.A.
Lowell International Realty Group
Harbour Financial Center
2401 PGA Boulevard, Suite 196
Palm Beach Gardens, FL 33410
Direct Line: 561.313.6961