Since you are located in San Leandro I'll assume you used the standard CAR Residential Purchase Agreement to make your offer. If this is true, you can certainly cancel the contract if you are within the 17-day inspection contingency period (or other period you set) of Paras 3H(3) Loan, 3I Appraisal, and/or 14(b) Inspections.
However, given that this is an REO purchase one would also have to assume that you were required to sign an Addendum from the REO, which likely overrides the CAR RPA in this regard. So, you need to locate that Addendum and then search for the sections that speak to the three contingencies listed above.
While the CAR RPA requires the active removal of the three contingencies listed above (with the Seller having to provide a Notice to Perform before cancelling the contract), the REO Addendum may in fact convert these to a passive removal, meaning that you automatically remove one or all of these contingencies by not actively removing them before the due date.
Hence, as others have pointed out, your answer can only be arrived at by reading what you have committed yourself to in the contract documents.
Best of luck to you!
Sara Mehrpouyan, CDPE
Dre Lic #01712757