In my experience, bank contracts used in foreclosure auctions are very, very one-sided. Banks are not making any representations or warranties about the property, and their documents offer very limited protection, if any, for the buyer.
A benefit of buying real estate in a bank foreclosure sale as opposed to a sheriff’s foreclosure auction is that the bank actually owns the property. In most cases, this gives you an opportunity to go in and inspect the physical nature of the property.
However, that’s not always the case. Sometimes a bank owns the property but there are still people living there, so you can’t get into the property to inspect it.
You should be very cautious with both bank-owned and sheriff’s foreclosure purchases: It is always recommended that you speak with an experienced real estate lawyer before you commit to a major purchase that you may soon regret.