Cash Only Property Short Sale---BC property is noncomforming??

[John Gonzalez]

Hi Guys, 

So I've been keeping up my property hunting and I came across a great property for $295k. This property is awesome and sold for $500k in 2010. Only problem is, it is a cash only unapproved short sale property. 

I made an FHA loan offer for $305k (right now I have enough saved up for an FHA loan, I might be able to do conventional also). I found the property was posted Friday and made the offer right away and with an expiration today (Monday). I haven't heard back from the Realtor. (My Realtor waited until 7pm to call instead of following up at 1pm as I had told him to. He also stated that the problem is that I have an FHA loan so he didn't think it mattered because the offer wouldn't get accepted anyways.)

Realtor writes me now and tells me that he spoke to the listing Realtor and apparently they have had a cash offer for a while now but he says that the bank wanted to list it on the market to see what offers come up for 5 days. I think this is total bull because the short sale is unapproved (making me think the bank hasn't had any input) and I offered more than the listing price so I would think it would at least get presented to the bank or seller as an option although it is an FHA loan. Also, I think my Realtor is doing an awful job negotiating if he just takes a No like that instead of calling on time or trying to convince the guy that the FHA will go through and that we are offering more.

My conspiracy theory for why the property only wants cash offers is that it is a non-comforming duplex. I drove by and it is literally two houses linked by a open hallway but is listed as a single family home on the property tax appraiser and some additions may not be included. Could they want a cash offer to avoid inspections and avoid this addition being seen?

Also, should I stop using this Realtor? The fact that he called on the last day of the offer at 7pm instead of the 1pm I told him about, stated that it wouldn't make a difference because it is an FHA loan and won't get approved anyways, and generally doesn't respond to my texts/calls (very few if any when I write, I try to lay off of contacting unless necessary) for several hours makes me think I shouldn't work with him. The only problem is that he is my brother....