Usually a counter response from any seller means there is interest. If the home is owned by the bank, it most cases it would be "bank owned" or an REO property and the foreclosure process is completed. What is important is given your lst time home buyer status that you have buyer broker representation by an experienced Realtor. The help that you need would best be provided by an expert on the ground in your community who can provide you with negotiation and a comparative market analysis. Also, you said the home was not "livable." I would recommend an inspection and a discussion with your lender if you are using one to see if they will provide a mortgage loan given the condition of the home. Good luck. Emily Medvec

How fast the bank responds to an offer depends on certain factors - small bank with only one person in charge of making the decision, multiple offers, or the home may be too new on the market and the bank wants what the bank wants.

What the bank counters at (only $900 less than ask) may depend on some of the same factors as stated above - multiple offers, too new on the market to want to be flexible. You need to talk directly to your Realtor on the why - especially as a first time home buyer (do not go it alone).

All in all - you know what your top dollar is for this particular home (with all estimate expenses to fix it up). Do not loose site of what you are willing to pay. If you are up against other offers, go in with your hiest and best offer - if it's to be, it's to be. If you are the only offer, wait. I know you are trying to get a good deal, but keep in mind the bank has lost a lot of money in the forclosure and on the loan they made in the first place. The bank is looking to cover losses and you are looking for the deal.

Stick to your guns (only if you are the only offer). You will eventually meet somewhere in the middle. Someone has to bend, though. Factors will depend on how bad you want the house (and you are willing to pay) and how bad the bank wants to get rid of the burdon.

Are you working with a Realtor? Have they explained any of this to you? If you are not working with a Realtor on your side, next time, do so.

It just means that they did not like your offer. If you are ok with the counter offer, sign the papers and have a nice day. If you don't like the counter offer, submit a counter on that offer or walk away.