Hello Tom. The answer to your question depends on the terms of your contract. It is true that some banks make you sign an addendum that includes a provision that gives the bank the right to cancel the contract any time prior to the close of escrow. I personally wrote up an offer once on a bank owned property and the listing agent presented me with such an addendum that was required by the bank. While I did not like it that the addendum was so one-sided, I explained it to my client and he understood what the risk was (i.e., spend money on inspections and not get the house after all). The only good thing was that I knew the listing agent who had a very good reputation and I knew that she had sold hundreds of REOs and she told me that this particular client has never cancelled a contract. While I could not have done anything if the bank had cancelled the agreement despite of what the agent told me, it helped knowing the agent and knowing that she had dealt with this bank client on a regular basis. Thus, if your contract contains the bank's right to cancel, I would recommend that your agent find out from the listing agent whether the listing agent is dealing with this client on a regular basis (how many sales has the agent handled for this bank and did the bank ever exercise the right to cancel?). There's only so much you can do and there's no guarantee that your contract is not the first contract they'll cancel, but at least you'll know what the odds might be. Good luck to you.