The offering price when it was on the market was set by the seller.
The bank has no obligation to price it the same, and might price it higher or lower. The bank will rely upon the pricing opinions they get from the Realtor who represents the bank. Banks also use AVMs - automated valuation methods to ascertain price values.
The bank will eventually place this home back on the market, but some banks take a while to accomplish this. Most banks avoid any repairs unless they are absolutely mandatory. i.e. a broken pipe that has leaked water is a health hazard. There are a few banks who are now starting to take a more proactive approach to repairs, but most do not.... more