I am in the process of trying to buy a foreclosure. The bank accepted our offer. We just completed our personal inspection and our lender inspection. The lender inspection requirest two minor repairs which we told the bank we would pay for. We found some issues during our personal inspection and we sent a letter to the bank requesting that they provide for the repairs. However, the letter sent to the bank still gave us the option to buy the home if they choose to not do the repairs. The bank is trying to terminate the contract because of a clause in the original purchase agreement which reads Should any lender or any insuring agency require that certain repairs to the Property be made or that certain or conditions be met, the Seller, as its sole option, may comply with such requirements or terminate the contract. My initial thought is that we have requested the repairs, and we also have language that says that we retain the right to purchase the home if no repairs are made. We have also stated in writing that we will pay for necessary lender repairs. Need help. Please advise.

I believe they can void or cancell.

But why do they want to, do they have a offer for more.

Remember normally it is considered a counter offer if you go back and request them to do something or to change the terms of the agreement, so by asking them to pay for something you in effect made a counter offer from the inspection. Had you accept the contract as written without asking them to fix anything. But your request to them would be considered as such and they should be able to refuse and send it back to you to accept or they can merely cancell.

So I believe by the real estate I have done and studied, yes this gives them the opportunity. Your real estate agent should have informed you of that when they helped you submit that to the bank.
** assuming you are using a buyers agent, ( your own agent) and not a sales agent of the bank.