Are you working with an agent ?

Are there other offers ?

Why is the bank putting a 5 day hold ?

Just to help clarify the Hart program is a vehicle used due to FHA does not
allow the seller to contribute to buyer's down payment directly in other
words is a form of legal money laundering just as social security is a legal
pyramid. The Hart program is only for your down payment it has nothing to
do with your closing cost.

Basically, you are asking the seller in this case Wells Fargo to pay 6%-3%
towards your down payment and 3% towards your closing cost.

In working w/REO and short sale I personally try to use the bank for lending
that currently owns the property.

Tough to tell, however on REO properties, it seems they lenders don't often like to see these types of loans/loan programs. What kind of condition is the house in? Will it pass FHA inspection? Remember foreclosure properties can take a while to process and close.....perhaps 30 days longer than traditional. You more or less have to be at the banks beck and call about closing times and dates.

Chris...Our agent said they our offer is a good offer. I don't think she is offering the advice a real estate should. First off she is a friend of my husbands mom. She has been in the industry for about 20 years. I don't know if the things she tells us are things we want to hear or things we NEED to hear.

About the HART program.....why do you think the bank won't like the Hart program?

Leah, Unfortunately it's hard to tell with an REO and depends on how many people are in the market for a home like this home at the same time. REO companies don't necessarily make decisions that make sense to the rest of us many times. I've seen them turn down higher offers for a cash offer, or, in one notable case accept an offer because they had more earnest money.
My suspicion is that they won't like the HART program too much.

Comps usually are based on all the criteria you mentioned plus condition and amenities.

What does your real estate agent say?