At the end of the day like you said someone is gonna buy the house aren't they and these things do happen, its harsh that someone has had their home re-posessed but not buying it wont help them.... and if there cheaper, HELL YEAH!!!
I would feel a little shitty but I mean if it's cheap and in these times then why not, I mean someone's gonna buy it so it may aswell be you init man. I mean yeh some people lose homes because of redundancy etc and that's bad but some people also lose there homes due to them taking out a mortgage that bascially they couldn't afford and possibly lied when applying for their mortgage to get the house they wanted. Depends on the person buying I guess, if they are gonna feel bad the whole time they live there then I wouldn't but if to them it's just a house then go for it.