I hope you have a good buyer's agent ... do you? If so, this should be real estate and negotiation 101 for them.
If you do not have a buyer's agent, in the event you choose to terminate this contract, I HIGHLY recommend you secure one before your next transaction. There are some obvious recommendations here, and hopefully your buyer's agent will spearhead that for you...but you should have HUGE negotiation leverage with the bank at this point. If water is exiting at water outlets, the damage could be very, very extensive. Proceed with caution and with the knowledge, expertise, and advice of experts, only.
Derek Bauer, Associate Broker / Realtor
Real Estate One