Below is a Disclosure that Fannie Mae is now requiring buyers to sign on many REO/bank owned homes. If Fannie Mae is going through the trouble of adding a Disclosure in order to protect themselves, I strongly suggest that YOU (the buyer) listen to them and hire an attorney if you're buying a foreclosure.
The need for this Disclosure means that Fannie Mae has encountered issues along the way...issues that can end up making that "good deal" into a very bad headache. It is better to spend the extra bucks to be safe than sorry; hire an attorney when buying a foreclosure to make sure that the law firm handling that foreclosure won't end up on your evening news. Protect yourself now and avoid problems later!