Mortgage, Loan Programms. High LTV

I have a loan that is ready to close. However, I have one little issue that is turning into a monster; A lousy $2,500.00 item of deferred maintenance. The appraised value is not subject to the repair of these items. However, the bank seems to think that the items are a safety issue and need to be repaired prior to closing. My problem is that the sellers are getting a divorce, and there is no way to get the repairs done as they are not willing to do them. Problem No. 2 is that the sellers mortgage is in foreclosure and the proceedings are going to commence in a few weeks. The LTV is under 60% and the property is in NY?