Clean the surface by powerwashing.

On the surface it looks like the bank is not accepting those offers but accepting lower cash offers.

That house could have it in stucco, window putty, drywall joint compound, ceiling texture, sheet vinyl flooring, vinyl floor tile, flooring and other mastics, HVAC ducts, and other things - most major surfaces.

It is definitely a process, involving a very thorough cleaning of all affected surfaces to get as much of the odor out as possible.

The lot meets the surface area requirements and 50' of frontage.

You'll at least want a couple air quality and surface tests (about $100 a piece) and given that there will likely be a couple months between the flooding and your taking possession, it's quite reasonable to assume that spore counts will be elevated.

I agree that the deal does not seem good on the surface.

Looking at a credit report is only scratching the surface of making a lending decission and using credit as a justification for more profit is more of marketing ploy by a lender than a true risk assessment.

Prepping the surface to create an acceptable substrate woul have been labor intensive.

If shingles were a surface that were regularly treated with paint (such as wood siding is) then it might be reasonable to paint.