Banks are always willing to negociate. Contact an agent who has experience working with them.

The banks will not help unless if the property is really ion a bad shape and they know they will loose more money in the long run.

Look at this blog it will help you to learn more about your situation.
I've got most of my answers there as well.

Good Luck.

The asking price of any home is the beginning of the conversation. Banks, just like any sellers, will have a bottom line and as long as your offer price along with the closing cost or any other contribution you want from the seller is within the bottom line, your offer should have a reasonable chance. You are also operating within a market and your offer will have to be the best overall offer that they can get within the timeframe they have set out for themselves. Your lender typically sets the limits on what they will allow a seller to contribute.

Dear Bill.

In short, yes you can ask the banks to contribute towards closing costs in a foreclosure or a short sale situation. The sellers, whether they are banks or individuals, focus on the net they will earn after the transaction. Therefore, it is up to you and your agent to decide the best way to financially structure the offer since the bank (or a private seller) will mostly focus on the bottom dollar they will earn after everything is said and done. In a foreclosure or a short sale you can make an offer below the asking price and still ask for seller contribution. The bank will either accept the offer or come back with their counter offer and a set of conditions that must be met in order for the sale to settle. My experience is that when the banks come back with their counter offers, they do allow a certain amount towards seller contribution. Pls. keep in mind that under FHA guidelines, you have to put down 3.5% of your own money - seller contribution cannot be used for this purpose. And yes, if you're using FHA financing, you can ask for up to 6% for seller contribution (up to 3% for a conventional loan). Good luck with your purchase,
Regina Weitz

Although I was born in Maryland, I am not up to date on current market conditions. If a house is getting multiple offers you need to be aggressive. Most banks will credit up to 3% towards non-recurring closing costs. Although FHA allows 6%, most banks cap it a 3%. If you need 6%, I would question your lender 's fees. If a home has been on the market for over 30 days and doesn't have any offers you may be able to write an offer 10% below list and ask for a seller credit of 3%. The worst case scenario, they counter your offer. If the property has multiple offers, you may have to write 10-20% over list. Your Agent should be able to help you. Most banks just care about what they Net. If you ask for a seller credit , keep your offer clean. Banks don't like to be nickled and dimed on NHD reports, Home Warranties, Pest Inspections, HOA Doc Fees, Etc. when you ask for a seller credit. If you ask for a seller credit, pay for the little things yourself. Of course if the property has been on the market for a long time, ask for the world.