In the March 2010 issue of Money Magazine an article appears titled "Making The Right Moves" by Amanda Gengler. This is an excerpt from this article:

"If you're in the market for a new home, you may be tempted by the low prices on bank-owned properties, which are going for about 30% less than seller-owned homes. But be prepared to come in with a hefty down payment (at least 20% to 25%) to compete with investors offering banks all-cash or significant cash deals. Be aware too that many of these homes need serious repairs, and you don't always have a chance to check them out before bidding. If you can't get a thorough inspection, WALK AWAY."

Unfortunately the banks make it difficult to impossible to do a thorough inspection due to the fact that the water, electric and heating system are sometimes turned off. The banks seem to have a mentality that since the house is at such a "bargain" price either you take it as is or someone else will. If you were thinking that you could have the utilities turned on yourself.....good luck because this is very unlikely (you do not own the home). Unless the house price would reflect the worst case scenario, which would be installing a new plumbing, electric and HVAC system, we agree that walking away is the right move.