If the owner is unwilling to hold a vacant property during the listing/sales period, I advise them they are more likely to sell to an investor at a reduced price.

In the event you can't apply your commission to closing costs, you can always just take no commission and take a seller credit instead if the lender is unwilling to let you apply your commission.

They are unwilling to change that.

Unwilling to drop contract immediately after noticing the contract needs a price reduction due to condition of the property (inspections) or lack of buyer interest (namely because they got it under contract for too much)3.

That will almost certainly elicit a quick response from them and an effort to satisfy you and make the complaint go away.If they respond, but they are unable/unwilling to answer your questions satisfactorily, follow up with termination.

@Harjeet Bhatti thanks Harjeet, yes I talked to the original lender and they are unable/unwilling to match the rate

They have lived there for over 20 years and unwilling to move. 

An FHA offer is especially weak on a REO because the seller knowns they will have inspection issues and banks are often unwilling to make any repairs at all.

One question and one follow up observation:First, my experience has been that most lenders are unwilling to finance for more than the purchase price until six months after purchase.

Or tell them you are unwilling to pay the fee but will move out and expect them to do their best to find a replacement tenant and that you will continue paying rent until the new tenant takes over.