The first thing I'd like to clear up is the FALSE idea that this property is going to be sold for around $ 84,000 this is just NOT TRUE, that is the amount of one of the loans ( it looks like the second loan). I don't know why Realty Trac always gives this false impression, and I wish trulia would not be linked to them.
With that said, the other realtors covered some of the risks, I would like to add that the main risk in buying reo's is that you will find do to loans that may take a bit longer, is your contingence period may run out before you are ready.
Let me explain, the banks usually have there own contract you have to sign that supersedes your contract, they usually give you only 10 days to do inspections and get your appraisal, and loan approved. Now the inspections are no problem to get done and you have time to look them over, its the appraisal and getting the loan approved that you will run into problems. 1st of all the banks usually have a passive contingence removal which means even if you do not remove the contingences in writing they get automatically removed when your time expires. Now usually you can just ask for an extention, but and this is a big BUT you will have a GREAT DEAL OF DIFFICULTY getting the bank to sign one, the listing agent usually says "oh this is ok don't worry about it", but you have nothing in writing and if the deal should blow up they can keep your deposit.
I don't want to scare you away from purchasing reo's, you just need to make sure you have and agent who understands some of the differences and pit falls of purchasing reo's.
As always feel free to contact me if you have any questions.