House Hunters: Part V

We finally heard some news on the house. The bank sent an appraiser out to the house to determine the condition, amenities and current market value. They determined the value to be above the amount we offered on the house. The bank than asked for a new offer from us at that value. We declined. First because it is a short sale and we have no intention of paying full market value for a short sale home. Second, because the house needs immediate repairs/replacement (exterior doors, appliances, paint, fence and carpet) and future repairs (like roof and siding) in the next few years. Third, because the house is still being taxed heavily which affects the monthly mortgage payment tremendously.

The ball is in the bank's court now. They could easily reject our original, firm offer. However, what I am sure they are considering now is: our offer is solid and definite, they could decline in hopes of something better but will they get another offer? There aren't any other offers as of today. If they don't get an offer, it becomes a foreclosure (bank-owned property), will they get more out of a foreclosure than a short sale? With the taxes on the house being so out of whack from the actual value, how will that affect the sale of this home?

So, now we wait (some more)...