It seems like most have a slightly different answer to your question.
If an Agent listed the unit as Pre-Approved ,that usually means that there was a buyer and the buyer fell out. They more than likely were tired of waiting for the Bank to offer up the lien release so they moved on to another property. They may have also backed out due to an inspection issue. I do a fair amount of Short Sales and I dont recommend anyone due inspections until I get the lien release ( authorization to sell the property at a discount ) from the bank. This saves the buyer the expense if they dont accept the offer.
The other wording that you mention : As Is , no warranties or guarantees - That has to do with the seller not being on the hook for fixing anything that may be wrong with the unit. I always put that and more into my listings so that the buyers know that they are buying it as it sits. I allow the buyers to do inspections and if they find any faults ,they can then decide if it is still a value to do them even after they figure in for repairs.
The most important thing you need to keep in mind is that these type of properties are the best deals on the market and with that there is some risk. It is even more important to make sure you are working with an Agent that knows each and every building in the market and all of the flaws that go with them.
For the most part if you are looking in the Wildwoods the buildings are less than 5 years old. There are very few buildings that you need to be afraid of . They may have some cosmetic issues which are due to the condo associations being weak from owners that are in default. Even with that said those buildings one by one they are being replaced by strong buyers and the buildings are on the road to becoming solid once again.
I hope that explains it a little better for you.