They absolutely can. Nothing in the listing is legally binding. You don't have any legal leg to stand on until you have a contract signed by both parties.
I've seen this happen before and in that case it was a reflection of the condition being so poor that the house couldn't be financed.
I have also never heard of an owning bank being remotely this proactive. You're usually pulling teeth to get any sort of response at all. Are you dealing with a financial institution or a unicorn?