Buying a REO with a quit claim deed - bad idea?

[Nick B.]

Hello BP,

I came across a property (SFH) that is offered for sale with the following clause:

Buyer will accept with a quit claim deed-no title insurance, assume any liens, code violations, fines.

The property is owned buy a bank but I wonder what can possibly be so wrong with the title that the bank cannot fix it and want to quit claim it to a buyer. I understand about code violations and fines but what else can be there?

How can I protect myself against possible title issues?

Thanks

Nick

PS: @Rocky V.and @Bill Gulley, may be you can help?