I am a local realtor in Macoupin County. That property is subject to a short sale, which is the reason that the bank wants more than the asking price.

Hi. I am a local real estate professional in the area. I would submit another offer. Maybe substantially lower than your first offer, since it has been on the market for 144 days as of today. This home is still active in the MLS. Here is a link to click on for the listing: http://www.sirmlsinc.com/sir/maildoc/sd_AAAa003Y-20090612150…
Let me know if you need any help purchasing this home and I am willing to work with you for any other home in the area.
Thanks

It's not unusual for properties to be put on the market at a low price in order to spark a bidding war.

In those cases, it's expected that the bids will be higher than the listing price. So while yours was higher, that was no assurance that yours would be accepted.

However, a cash bid is very strong. I've heard of several instances recently in which a lower cash offer was accepted over a higher offer that required financing. So I suspect in your case that either: (1) your cash offer, though above the listing price, was substantially under the offer that needed financing; or (2) the seller wanted the absolute highest price and was willing to risk problems with financing.

Check with your Realtor for the best strategy. You certainly can try again; the question is what you should offer.

Good luck.