a bank will do that; in which case buyer is entitled to refund of deposit and terminates the deal. Hope it turns out good for you.
One more thing that you will need to consider is your financing...Depending on how you are purchasing, being cash or if you are getting a loan the home may not qualify for certain loan programs depending on what was stolen/damaged. Make sure you know all your options/facts before you approach the seller.
Hope everything ends in your favor-
Karen Paytas, GRI, CMS
Real Living Kee Realty