Help! Buying a Short Sale and it feels like my agent is not on my side!

[James Yang]

I've been in the process of purchasing a shortsale home for the last 6 months. Since we did not have a purchasing agent going in, we took the advice from the short sale listing agent that we could use their firm as well to make things go "more smoothly".

To make a long story short, it's been 6 months and the purchase price has been bumped twice from 415K to 420K and now 430K and they are trying to bump us up again. I have asked to see any counteroffers or any communication from the bank and our agent insists that none are available from Chase Bank (formerly WAMU). Below is a direct quote from our agent's latest email when I asked to see bank communication:

"The lender will not provide us with anything in writing. They have recommended that we resubmit an offer on the property. Can we offer them a little more than $430,000? If we resubmit than they will have to review the offer and approve or counter like they did on our original offer. I have not placed the property back on the market. Let me know what you would like to do. "

HELP!! Is it true no documentations are offered by the bank when they turn down a Short Sale Offer? Any suggestions??