I am buying a bank owned property. I received the contact from the seller today. THey want to give me a special warranty deed rather than a warranty deed. If I do a title search and get title insurance, could this type of title still come back to bit me? Can I ask the bank to issue a warranty deed and if so what are they likely to do it?

As long as you have a title search done and buy the title insurance policy then it doesn't matter which form of deed the bank provides. The title company will still insure that title is good.

I suggest that you have an attorney review the title search to make sure that it doesn't contain any exceptions that might create a problem for you later. Title searches often contain exceptions and most of the time they are unimportant but if you don't know how to read the search then you may not know exactly what is being excepted.