Congratulations on getting a further price discount from your lender-seller, treehugger! This problem can be fixed.
edit: I would suggest you get someone else to do the necessary repairs after the place is tented. These repairs are a huge profit center for termite companies. For instance, an $800 repair shown as necessary on the report could cost only about $35-$50 if you do it yourself and then paint it to match the house/fence. But in order to do it yourself, you would have to take title first.
