Is the short sale completely up to the bank?

[Hendrix P.]

I am a looking at a property which is a short sale. And, admittedly I'm a bit confused. The property is listed at $25k and I was advised the bank approved that amount. I was also advised that in that $25K there is a $3k settlement. So from what I gathered from my agent my purchase price is $22K plus $3k. Does this make any sense???

Also, I was wondering if that $22k is a fixed price or I can put in a lower offer? Does the seller have any real say in what is accepted or is this completely up to what the bank will offer?