7 days from closing, lender was inspections...

[Justin Smith]

Been lurking for a few months, but this is my first post. Not sure how to start so forgive the format. Here we go...

On May 3rd an offer was accepted on a property in WI. Duplex in the downtown area of a small college town. Upper occupied by great long term tenants (8 years) with one member enrolled in the college. Current rents well below market value, 800s in a 1200s neighborhood. Needs roof and plumbing immediately, contains mold in finished attic and unfinished basement, active Knob and Tube but was not an issue obtaining insurance, needs GFCI upgrades throughout, some masonry work on porch, chimney and exposed foundation, wood/stucco siding both in rough shape, poor grating, needs 2 bathroom remodels and 1 kitchen, 2 range, 2 dishwasher, 1 fridge. 

I'd love to go over my numbers 1 on 1 if anyone is interested. This is my first property.

So after the home inspection, we agreed on a price reduction and opted for no further inspections. After submitting documents, an appraiser was sent out. His first trip didn't go smoothly due to a missing lock box, and so on his second trip he was able to access the property, and assessed it at 7500 below the negotiated price. Seller is out of state, recently came into possession of the property, and is highly motivated, so he agreed to the appraised price.

After the amendment was signed and returned, the loan officer called to inform me that the underwriter is requesting some inspections based on the appraisal. They would like the roof, the foundation, the mold, and an unsafe exterior  wooden staircase inspected. The seller, while very motivated, is also out of patience, and is ready to kill the deal.

In an attempt to keep it alive, a dialog with my agent led to permission from the seller  "to do whatever it takes to put this deal together"

This was in regards to altering the property to meet the requirements of the lender, to be clear.

As it stands, we close in a week. I have specialists for the roof and mold coming Monday and Tuesday, the mold remediation company believes they can have it clear within the week. The roof may require an extension, as it does need to be replaced. When I can contact the loan officer, I can supply him with an excerpt from the Home Inspection Report that explains the dampness in the basement that the appraiser flagged, and at any time I can take down the rotted wooden steps.

But what would you do? What are your thoughts on this situation? Have you experienced this scenario? As a buyer, have you arranged for repairs to be made BEFORE closing? While I should have already done so, I am currently seeking an attorney to help navigate this. To any attorneys, how can a buyer protect themselves in this situation while taking on the cost of repairs? To any contractors, would this situation be too risky or complicated for you to accept the job? 

Any and all feedback is greatly appreciated!