Absoultely, even though every bank has differant criteria. This repair amount should be calculated on estimated HUD-1 and presented to lender. We have been sucessful in a situation like this before. If current buyer feels nervous about the whole scenario, encourage them that they will be enjoying the benefits of all new plumbing!

Lee,

You won't know unless you ask.....

Bottom line here is the bank probably did not know this was a problem but will need to deal with it now or later. Since they have a buyer presently, it certainly would appear that it would benefit them to make a concession sooner than later.

Check your contract closly for the release clause based on unexpected repair work. Time will be of the essence to be able to take advantage of this. Put your adent to work on this ASAP.

Good luck

You absolutely have a chance to negotiate. It will depend on the lien holder or representative you're dealing with as to what they will want to do. I hope they will see things your way and that there will be some kind of compensation allowing you to go through with the purchase.
This is something you and your agent should speak about in depth ASAP. I don't have the contract in front of me and I don't want to interfere with your agency relationship, but I do have a few suggestions:
Make sure you read over any sales agreements AND addendums you may have signed. Some addendums provided by the bank will override some terms in the sales agreement, especially if the PA Standard Sales Agreement was used and the bank provided the addendums.
If this is a HUD foreclosure, make sure you had their expressed written permission to perform the test and you made them aware of the dates you were to perform the test.
Hopefully, you used a licensed plumber to un-winterize the property. The bank may question them especially if their thought is that it wasn't winterized by another plumber properly to begin with.
This kind of plumbing issue can quickly snowball into other issues such as mold and damage to other home components such as the furnace. If you do go through with the purchase, this is obviously priority number one.
Review any possible "outs" in the sales agreement as they pertain to inspections. If the bank refuses to concede the repairs, see if you can get out of the contract without losing your deposit.
I sincerely hope the bank will see things your way, correct the problem, and you will be enjoying the home soon. Just in case, make sure you are prepared and that you fully understand the language used in the contract pertaining to inspections.

Absolutely...make sure yourt agent negotiates all the repairs, new flooring, and any cost you incur for the delay in funding your loan.

WOW, listing agent needs be notified ASAP who will contact the bank, who would need repair home I dont believe you can pass appraisal process by your lender, CURRENT MORTGAGE company who owns bank realize that. However if not address mold issues COULD possbly been.

Hi Lee,

You can always negotiate with the bank especially it sounds like the house has been damaged by the water.
You should negotiate, otheriwse it would be very expensive to fix the whole house after water damage.