Short sales take longer than planned many times, so maybe the bank is getting late in their response?
Or did the bank, specifically, rejected the offer?
If you're confused, you or your agent can contact the listing agent and ask him about the response.
If he says that it was too low, and he doesn't send a counter-offer, then I would suggest you to send a new better offer.
If you are still in the running, the Bank will usually come back with "your best and final offer" request:
Have you had your Realtor do a CMA to determine how close to Market Value you are with the first offer?
Banks usually won't acknowledge a "low ball" offer.
It is sad to know that some listing agents expect to make double commission on their foreclosure listings and expect buyers agent to leave his commission for them. :(
When making an offer, you should be making an offer that is realistic based on what you want to pay and the homes value. If you low-balled it, they may simply ignore it and wait for other offers or are already evaluating all offers. Worse, is that even if you do go back with a higher offer, they may accept a lower offer for various reasons such a no contingencies, cash, fast closing, etc. If you find a desirous home, you should be working with your agent to determine a reasonable offer based on repairs, condition, etc. You should be fairly close to the banks valuation (BPO) and you should place your offer accordingly based on what you are willing to pay unless there are unusual circumstances and you think you can justify offering far less than what the bank wants. Most banks are no longer giving away properties and have a fairly good idea of the local market. Your agent should be able to call the listing agent and get an update. If they haven't, ask them to call and get you one.
Yes, do consult with your agent to determine if there are other offers on the property as the listing agent has to disclose that information if asked. If your offer is low then instruct your agent to revise your initial offer to a higher amount.
Good luck to you!
Prudential Connecticut Realty