That can delay my offer by a week and time is of the essence with these REOs.So I'm wondering if the bank will see this as a very unfavorable weasel clause, and a definite rejecton solely on those grounds.

Be advised, though: Some seller financing offers may function more like rental agreements than traditional mortgages, and offer unfavorable loan terms that offset any initial benefits to be had.

In commercial, institutional players don't touch deals sub $20M due to the lack of scale and unfavorable financing (many banks, debt funds and lifeCos won't lend on small deals, or would offer bad terms and full recourse loans).

As long as the market rent is determined to be higher than the total mortgage payment you will be good to go (You could also have the mortgage be higher than the rent but the terms will be extremely unfavorable).  

So far, the only bank/lender we have found that offers loans for this type of property has unfavorable terms.

Illinois does have high taxes and unfavorable landlord laws. 

If it was also one of your oldest open accounts, your average age of open accounts may have changed unfavorably as well.Installment loans have a fixed payoff period.

If you updated that to current rates, it might tip this more into unfavorable territory. 

I always wondered how these refi's went down in unfavorable situations so I really appreciate the details from that scenario as an anecdotal example.

So the 15% down would pull me below the 80K, which gave me the very unfavorable terms and the whole deal blew up.