Almost, but not quite.I ignore all the mystics, seers and soothsayers with their tinctures, potions and remedies. 

Also, you start jacking up walls and you have a hell of a lot of plaster/drywall work to fix.There's no license needed for this type of work either, just like no license required in Indiana for mold remediation..

However the best way that I remedy this situation is to get 3 quotes. 

If the siding is asbestos you can cover with minimal costs but if you remove then you are talking about possibly needing a specialized company coming in to remedy it.

Can any confirm that this is a problem or provide any ideas to get this remedied other than repairing the drywall prior to the loan?

One is about 2 feet in diameter  Just wondered if anyone else has tried this remedy and what results you got.

My initial reaction is that I would inform the Seller that failing to close would breach the contract, that you are fully prepared to close and will proceed as if closing will happen as scheduled in the contract, and that if Seller breaches the contract you will have no choice but to exercise your right to seek a remedy.

Make sure your contract states that keeping the earnest money is the other party's sole remedy and not specific performance.

However, I am curious to see if you have any suggestions, Thanks,UPDATE:Any good mold remediation references are greatly appreciated. 

Each may have different rights and each may have a different legal remedy required to remove them - this could be a lengthy process depending on your states laws.