Bank owned homes are "as is - where is" and it's your responsibility to use your due diligence period wisely. I know of no REO sellers that would even entertain your suggestion of them paying anything, nor should they.
I'd start with your agent and wonder why they braincramped on such an obvious thing. Surely ytou had a home inspector in there and I assume an appraisal.....and I know that you reviewed the tax record of the home - all due diligence items.
If you did it without and agent or without proper research.....responsibility lies in the mirror, not with anyone else. If you did use an agent, you might have failed to do an adequate job of researching them.
This one is on you unless you can show clear negligence or purposeful fraud; "as is-where is" means just that.
I'm sorry to hear about your situation. Buying a foreclosure home has it's positives and negatives.
On the bottom of the MLS listing there is a disclaimer that reads "This information is deemed reliable but not guaranteed."
This home you purchased was banked owned and being sold "as is". My advice to any buyer interested in purchasing a foreclosure home is to have an inspection done beforehand. This way they know in advance what the cost of repairs and any findings will be in the future.