To remove any doubt in the future, ask the listing agent ,or your agent if you have one, if the seller will consider an offer with "X" concession as part of the offer. Let them tell you up front. If you ask for a concession from any seller, normally you need to sweeten the offer in some way. As you stated, you offered near asking price, so a $400 concession seems to be trivial and should not cause your offer to be dismissed out-of-hand UNLESS the bank has a standard (albeit stupid) policy to not provide a buyer's home protection plan.

Yes.
If you want a warranty - plan to pay for it yourself.
If you want the home - don't throw anything into the mix that could mess it up for you.

Christy,

A bank is going to do what is in it's best interest. If you think about it, that doesn't differ any from when you are dealing with a private seller. The bank's job is to get the most value for their investment. As a general rule, banks do not like holding foreclosed properties. It is a bit of a headache for them to manage these properties and they sit on their books as non-performing assets. The best way to approach purchasing one of these properties is to write a reasonable offer that meets your needs. The seller can always say no, but in this current market it is far more likely they will negotiate with you. If you like the house, and really want to make it your home then come with a strong offer and make sure that your agent advocates aggressively on your behalf.

You should approach the bank as you would any seller. Consider, though, that the bank may receive multiple offers and give no priority to yours. You should specifically ask any seller if there is any offer already submitted. They don't have to tell you unless you ask. Pricing is determined more by market conditions and property conditions. Don't assume that a bank will sacrifice a home under market value just to get rid of it. At the same time, don't assume that bank officials will act reasonably or rationally no matter how good you think your offer is.

The will accept any reasonable offer. Therefore an agent would need to give you a report showing what the homes are selling for in the area. Then you can make a reasonable offer considering what work needs to be done. There are some that don't need much work and they will not accept very low offers on these. There may be some Short Sales (before a home goes into foreclosure) out there which are sometimes priced better than foreclosures. Call me if you need assistance finding your home (314) 223-4687.

If they want to really move the house, I would think that they would...time will tell , if I can preapprove you , I would love to.. we have all varieties of mortgages...