House buying dilemna

Ok here's the situation I have facing me currently as I am looking for homes on the Northshore. I have looked at plenty of houses and narrowed my focus down to two possibilities.

One is a very nice house in a great neighborhood that is pretty much move-in ready but of course its at the top of my price range. It has been very well maintained by the previous owners and the area its in should at least hold its value over time. Its location is superior to the other house.

The other is a bank owned property that is not the typical brick and stucco look and is near the bottom of my price range. It is located in a newer neighborhood but its a less in-demand area of the northshore. The benefits to this house are of course the price, its on almost 3 times the property area and its unique style. Also, at the price I think i can get this house I can do a 15 year loan instead of a 30 so I would be gaining equity at a much faster rate than the other house. The downside to it is that it hasnt been lived in probably a year since its been in foreclosure, its needs probably 10-15k to get it into decent liveable shape.

The difference in the list prices for these two houses is about 70k. This is the conundrum i am facing. Should I take the easy,less risky but more expensive route or should I make the cheaper, more unique but more risky purchase?

Also, if someone can enlighten me as to the things I should be concerned about with a foreclosure/REO type property I would appreciate it.