First property, should this terrify me?

[Matt Yates]

So, I've been gathering info for a while, getting funds ready and have been searching for a great deal. I've noticed a foreclosure within a mile of the local university, listed by Freddie Mac at nearly 1/2 of the tax assessed value and what I've placed as the market value. I haven't viewed the property, but I always think to myself "Why has this property been on the market since November?" when it seems too good to be true. Here's the description;

"Just freshened with new interior paint. Laminate and wood floors. Basement wall has been reinforced. Great buy! Special HomeSteps Financing available. Pre-qual required. Sold as-is. $500 warranty allowance. Agents: See attachments. See Agent Only for selling bonus info."

Pretty standard stuff, except for the bolded part. That TERRIFIES me. Am I right to be terrified? Obviously, further due diligence would help figure out what's going on, but I'm just curious as to the more experienced members' thoughts.

Thanks.