That answer id a definite "maybe". You may get a deal on the selling price of the home, but you have to keep in mind that the bank will be trying to recover as much as they can of what they are owed on the home. You will need to be aware that there is a level of uncertainty and extra effort in closing on the property.
REO's offer a set of challenges and risk that is not typical with other properties. You may be responsible for extra fees and expenses during the process even if you do not end up purchasing the home. You should have a home inspection done so you know exactly what you are getting into, but you should be aware that the bank or lender is most likely not going to make any repairs or updates no matter what the findings turn out to be. This means you pay for an inspection and accept whatever needed repairs as your own responsibility, or you choose to walk away.
You should also consider the value of your time. Depending on where it is in the process, an REO home may take longer than a typical home to close, which is approximately 45-60 days. However, since the rise of foreclosures in recent years, banks have learned a lot about how to streamline the process of selling foreclosed homes.
Speak to your real estate agent about your interest in looking at REOs or bank-owned homes. For some home buyers, it can be the answer to finding a new home at a great price.