REO banks sellers do not want to take your deposit and miss the contract. Their best interest is to push you to close the escrow as soon as possible.

In my case, the bank’s addendum orginally required 30 days of escrow, but it was extended to 45 days initiated by the bank because of “California mortgage deal”. The bank paid for termite inspection (less than $100 as I saw the receipt in the closing doc) and the result turned out to be clean.