Bank Seller - Should I reactivate contract? Inspection/Utilities/Repairs

[Jason D.]

We'd love to hear your thoughts on our situation:

Offer accepted for Single Family Home (foreclosed bank owned) - Chosen through bids - communication with seller was very slow and drawn out. Contract stated that seller was to de-winterize the property and turn on utilities for inspection. During inspection period of 7 days the bank did not turn on gas due to missing gas pipe (we were unaware of) and the water was not turned on due to failed pressure test. We found out they were to get bids to repair the damages of the unseen leaks (did not tell us when it would be repaired by or what the damages were). Submitted extension on the inspection period and we did not hear back so we had to void the contract due to inability to do a proper inspection. Our agent let us know that the sellers agent is working on getting the deal back together to make things work.

1) Should we reconcider and reactivate the contract in the circumstances of having the property dewinterized, water on and electricity?

2) Should we reduce the price we're willing to pay due to the missing gas pipe and the circumstances? If so, how much of a reduction so it won't get declined as well?  (This is the second time a deal with the seller fell through for this property)