REO with problems

[David Silliman]

Hello folks I'm a newer real estate investor and working on purchasing an REO with an FHA loan and bank to pay up to 3% for closing cost, buying for myself and will be renting out the down stairs apartment. All the above (was as advertised) and has been venerably agreed to and was told would have in writing by last Friday. Now they are saying the septic needs repairs and want me to pay out of pocket (to qualify for FHA loan home must be in move in ready condition) we have said no we can't do that because of loan type their realtor responded saying the would fix it before closing and would have paper work by last Tuesday. Now bank is saying they won't fix it. How can I solve this problem? How do I get the bank to fix it? or same other way to get this home to qualify for FHA loan without money/risk? What would you do? Thanks David Seattle area