If the marketing period of 120 days has run out, the Sellers are more likely to push for a traditional Short Sale and skip the HAFA incentives to avoid foreclosure.
What does your Realtor say? Your offer is on the aggressive side and probably will not be accepted by the Seller. If the Seller accepts it, the bank will probably reject it and not even offer to negotiate.
At this time of year when inventory is so low, most buyers searching for a home to purchase are very serious and are more than likely to offer a more reasonable deal to a seller to get the property they want. If you are a serious buyer, your offer will reflect that.
If you have any questions, please do not hesitate to give me a call.
With HAFA there can be some negotiating. If you can support your offer with market information you might be able to get the short sale price reapproved. I currently have a HAFA short sale in Counter Offer situation with Bank of America and they have come down from the original asking price that was approved.
The key to buying a short sale is to offer market price. If the approved price was higher than market, there is a chance you will get it approved. It is at or below market, they may reject the offer.
Best of luck to you.
ERA Tom Grizzard