[Sheriff Gonna Getcha]

Yeah, foreclosed homes are typically sold "as is," meaning there are no binding representations as to the condition of the home. Additionally, as you may know, banks are less willing to negotiate the purchase price than your garden-variety homeowners. Consequently, you typically must pay the asking price (which is usually lower than the true "market value"). So, while you can sometimes get foreclosed homes at a bargain, you may want to steer clear of them if you are risk averse and check into them if you're willing to take a gamble on getting a home at a real bargain.

I don't know much about REO homes.