REO sell cancelling contract

[Kevin Kent]

I'm currently under contract on an REO property here in Chicago. After the inspection I was made aware of significant mold issues as well as some foundation and rat issues that were not obvious when we made our offer. We made a price reduction request, they countered and I requested we meet in the middle. The asset manager is now terminating the contract saying what we were asking is unreasonable.

I understand I have no power here and we did bid on an as is property but can the bank really void a signed contract b/c we requested, not demanded a price reduction?

Thank you in advance.

[J Scott]

Originally posted by Kevin Kent:

The bank is requesting pictures of the issues discussed in the reduction request but demanded that we do not send them the actual report from the inspections. Pretty much a CYA move that in my opinion should be criminal.

If they don't agree to the reductions, just mail them (certified, of course) a copy of the inspection report... :)