We submitted an offer with a financing condition, and everyone seemed happy with the deal initially.

Typically if no one bids on the property, they will initiate a price reduction on it.

I bet not. 

Structuring the deal properly (like through a land trust) can reduce this risk.Your best bet is to connect with an Illinois investor who has successfully done sub-to deals or find a local real estate attorney who specializes in creative finance.

Before 2008, lenders often approved ARMs based on borrowers ability to pay the initial lower interest rates.

Quote from @Jinglei Shen: I was in a contract for a duplex, the appraisal come back materially lower than asking price, 14% cheaper, the seller made my agent to challenge the appraisal by submitting a set of comps at and beyond asking price in the same area, we ask my lender to revalue, the revaluation result came back, same price as initial appraisal.

You would have earned 9% on the initial $5K invested, or $450.  

Was told initially it was a banking issue, but we will see what the latest is . 

Its was initially a very suburban location which over the years has become prime to many shops, restaurants, schools and IT companies.

Helping those who’ve served has been a rewarding experience.My tenant initially struggled to find a place due to stigma around the program, but he’s proven to be more responsible than most.