Counter offer for Short Sale property

[Sai T.]

Hello Dear BP Members

 Short sale prop has been on the market almost 3 months but there was not a single offer. In August I made an offer $109K and it was listed for $150K. Bank statrted pre foreclosure process after my offer and prop appraised for $145K (bank did the appraisal). Now bank wants $127,600 from seller and seller wants me to go higher.

It's a good prop and may need $15K-$20K for Rehab and ARV $190K but it is not a very desirable location. I may pay extra $5K.

Any suggestions will be appreciated.

Thanks