Are there risks to buying a condo that has been repossessed by the bank through a deed in lieu of foreclosure?

I am interested in purchasing a condominium in a building of 12 units that has been or is in the process of being repossessed by the bank which lent funding to the developer who recently remodeled the property.

I'm unsure as to whether or not a deed-in-lieu affects the title of the property in a similar fashion as a foreclosure would.

Furthermore, I am somewhat curious as to whether or not this scenario is unusual and if I should be immediately concerned about other matters regarding the property if the developer no longer is involved. The units are finished and reasonably (though not expensively) furnished with hardwood floors and tile throughout.

Is this just a case of the developer not being able to capitalize on their investment quickly enough to manage payment on their loan? Should I be concerned or should I just take advantage of the bank's relative urgency in selling the remaining units?

A deed in lieu of foreclosure simply means that the owner wanted to avoid the stigma of a foreclosure and turned the property back to the lender voluntarily. You will get title insurance to guarantee that you are buying a clean title (unless you are ultra stupid.)

If the previous owner was a developer who was doing a remodel on a building and wasn't able to move the property fast enough or suffered from a crash in the market, there may be some workmanship problems. You should insist on an inspection of the unit to satisfy yourself that there are not any defects that you will be stuck with or at least can't live with.

Deed in lieu means nothing to you the purchaser.

Do not skip a title search nor an inspection. Know that when you buy from a bank the transaction is "as-is" so that iswhy you need the 2 things I mention.

Added
Before calling the Einstein that answered you ask yourself if you want to do business with someone who can not even read a contract he/she/it has entered into!