When you mentioned "your agent," were you referencing your own Realtor that's representing you as your Buyer's Agent? If not, then I would highly recommend that you secure the services of your on Buyer's Agent.
Without knowing more details about the contract, the addendum and the City of Phoenix stipulations, I would not be doing you a service by offering an opinion. But in general terms, if the only issue is the length of the inspection period, then it would seem that you might be able to re-submit your offer and try to negotiate a new inspection period with Freddie Mac. Does that sound reasonable? But again, discuss it with your Buyer's Agent. Otherwise, let me know if I can help in any other way.
Best of luck!
Nextage Realty Professionals
LinkedIn Profile: http://www.linkedin.com/in/hiremario
What you are describing does not sound right. The bank should know that if the property does not pass the inspection the deal is cancelled, and I have never had an issue with asking for a few more days for an inspections extension. Did your agent talk with the seller's agent? Are they giving any reason for their actions? Are you sure the property will pass the inspections?
The only thing that comes to my mind is that the bank might know that the property will not pass the inspections. In the future make sure that your agent get all those issues clarified, and set the expectations before placing an offer, to avoid this kind of surprises.
ABR - Accredited Buyer Representative
We're missing a lot of information that we'll need in order to give you advice. I've helped buyers with the city of Phoenix grant program. Are you talking about the ADDI program? Call me to discuss.