UPDATE
The bank that owns the property contacted my realtor today and told her that they have to cancel our contract on the property due to "ongoing litigation."
APPARENTLY - when the property went to auction on the courthouse steps back in November, a woman bid way low on it, and won. However, she did not make the cashiers check out to the correct party, and the bank contacted her to let her know that her bid was rejected, as a result.
She filed a lawsuit, claiming that she has rightful claim to the property.
I'm not sure what has transpired over the last 3-4 months, but the bank never mentioned this to us, and are only telling us now that a judge has agreed to hear the case. The bank's lawyers assure us that the woman does not have a leg to stand on in the matter, and they are begging us to not walk away, and to give them about 30 days to clear up this matter. They are apparently afraid we are going to walk away and that they will have to start from scratch.
However, if the judge sides with the woman, she gets to buy the property. But apparently the bank in no way wants to sell for anywhere near that low of a number.
So... it's a wait and see game now to see how the hearing goes. Sigh... nothing is easy.