An REO (a home the bank has already taken back or foreclosed on) is an AS IS listing when it comes on the market. That is to say you have the right to inspect it but don't expect the lender/seller to fix any problems. Actually once in a while they do fix problems. When there is a mortgage incolved and you can't get insurance because of a defect (roof) they mightt fix it..

Make an offer with Right to Inspect and right to cancell contract if the inspection turns up problems you don't want to deal with, Of course, you would be out the cost for the inspection.
Septic and well should be inspected by a Professional specializing in those areas.