Bank wants more than it's worth... Now what?

[Melissa Kirchhoff]

So... I found the property, and it had another offer that had just come in on it. I thought I could win out, so I went through the hoops to get a personal loan so I'd have the POF (knowing I couldn't win without it) and by the time that went through, the other offer disappeared (I thought it was a brilliant stroke of luck!) and so I submitted the offer.

Now I know what happened to that other offer! It's a bank owned, and basically they want more than it's worth (seriously, I know the appraisal on it!) So yeah, screeching brakes. I can't pay what the bank wants (nor will I on principle) and now I don't really have enough to buy something else and have money to rehab it.

Also, if I just return the loan, I'm out $800 of the origination fee (I looked into ones that you could repay within 30 days with no fee but I couldn't get them or couldn't get enough).

I know I dug myself a hole and I'm hoping the universe gives me something soon, but in the meanwhile, do you have any idea what I could do or use this money to invest in? Should I just return it and consider that 800 my learning lesson or hold it incase something else comes up? I am going to wait at least another week or two and re-submit my offer to the bank and see if they will go lower once it sits a bit longer, but I'm feeling a bit panicked about the situation and would like some ideas if anyone has any!