Short Sale Counteroffer Help

[Therese V.]

We put in an offer on a short sale at $46k, plus there is a $5k bankruptcy release fee that we need to pay in addition to the down payment.

It's been a few months and there is a leak in one of the bedrooms coming from the roof. Previously, we thought it was just a one-time thing. The bank has countered at $62k (which is actually more than it was listed for to begin with, but anyways). 

Our realtor went to take some photos for us in order to show the bank what needs to be done and justify our price. She called letting us know the leak has started up again and there is now moisture in the basement. Our maintenance man went today and said that the ceiling needs to be removed and one of the bedroom walls where it was leaking. He said no biggie because it's just the drywall. He said the basement has the moisture and now surface mold (the utilities have not been on all year, so he said it's because no air circulation down there) and can be cleaned with bleach (for now, unless it gets worse). 

He also stated that we would need to repair the roof area above that bedroom. The bedroom is actually part of an addition on the house that has one set of shingles and the rest of the house has 2 sets. He said we shouldn't have to replace the entire roof (which could be $10k) but that area and the connection area. The roofing companies will not come give an estimate because we do not yet own the house so they can't walk the roof. I have no idea the cost to repair it short of the $10k another roof in the area cost to completely tear-off and replace.

The rent we'd get would be $900, 5% interest on the loan, 20% down +$5k bankruptcy release fee, needs paint/carpet/stove/fridge (plus the repairs from the leaking). Taxes are about $1600/yr. 

It's a good property, except for the water issue in that one bedroom and I don't know the cost of repairs. I'm thinking we counteroffer at a lower price than our initial offer since they counter-offered and the ball is now in our court. The realtor will have to show comps and explain the lower price, which is obvious when she submits the pictures as well.

What would you do? Should we walk away? Keep our price with those extra repair costs (which I REALLY don't want to do that option)? Lower our offer on a counteroffer??

Thoughts?