Potential Short Sale purchase

[Julia Deck-Russell]

While I've done several purchase, fix and flip, I haven't bought a short sale. I am currently negotiating one. I made an offer seven weeks ago. Cash, no contingencies, close immed. 

There was an offer $10k higher than me than needed financing. The bank/seller wanted them but they dropped out. Now the bank has finally responded with a "net offer acceptable to satisfy FHA" which is $3k higher than our initial offer- which wasn't a net offer. Is that their true bottom line?

The listing agent isn't a short sale agent/specialist. Very nice person who says she cannot resubmit an offer that doesn't meet the net offer counter (which was an email from the bank). She wants a HUD with a net of the banks amount they stated in email.

My title company created a HUD with the net they want on line 504. However now the agent is saying it needs to be about $7500 higher to cover commission etc.

My questions are:

Am I able and will the seller/bank consider an offer lower than the net they've stated???  (There is one other cash offer but it's $1k less than mine. ) worth trying?  CAN the agent submit (she doesn't think she can)

The appraisal is $13k higher than they are saying as net they need. 

Thank you for any experienced input!!  Julia