I'm with Linda Cullen on this one. Ignore the change in list price, pretend it doesn't exist, if you want this property, and proceed. New bidders who come in at the lower price will lose. It's not that the bank suddenly wants less money, I assure you.
I would point out however that there is no shortage of such properties in Rochester NY. I would recommend that you do not over-extend yourself financially. Foreclosures/REOs always seem to require more repair than you think when you buy!
Realize too that more of these properties will come onto market in the spring and summer.....and, in fact, next fall and winter. You might think this one is "perfect" but if you lose out, you might be pleased with what you eventually end up buying. It happens that way a lot! Best of luck to you.
Karla Harby VP
Rutenberg Realty NYC