REO Purchase. Bank problems with closing

[Sunshine S.]

Hi all,
My first post, just joined so grateful for any guidance/help.

We put in an offer on an REO property. Purchase as is. Accepted at 55k. Cash purchase. Just found out that the bank actually paid 98k at auction.
We were to close earlier in month but I (not bank or realtor) found out that there was a code enforcement lien on the property. Current penalty fees approx 70k. Accruing daily at approx $100. Bank to rectify in order to give clear title, some outside tidying up needed. They not started despite this coming to light weeks ago. Agreed new closing date at the end of the month. Because of my homework I know that they wont close at the end of the month because if they want to apply for violation fees reduction, the Board meets only once a month, and they missed the deadline.
Although I have paid deposit, not got my escrow letter, or signed extension contract from seller. My agent has confirmed that she has the signed extension although I have not seen it. Agent has also confirmed that they are proceeding with the sale to us, although one web site has the property listed as active contingent.
Really my questions are as follows:
1. Do you think I have any need to be concerned? I am becoming a bit anxious and wondering if they might be trying to do a deal with one of the bidders at the auction. (Bids of 97 and high 80's).
2. When they discover that they won’t be able to close at the end of the month do you think there might be any leverage in trying to get price down, or they pay penalty for delay. Contract makes no provision for it, although time is of the essence. Don’t want to push my luck, but would be nice to get a reduction if possible.
3. Also I don’t think that the bank have actually registered title in their name yet. The property is in Florida. Does anyone know if the redemption period is from the date of the auction, or from the date of the registration of the new owner subsequent to the auction?

Also this is my first REO purchase, imo the bank seem to be pretty screwed on the deal, and might have been better just to let it go to someone else at auction. Wondering if there are many situations this bad for the bank.
Any help or general comments greatly appreciated.
Thanks.