Yes going through hafa.Thanks @Brett goldsmith If I push back what is your sense of happens next - will they recounter. is there risk that they walk away? 

I was listening to the Bigger Pockets Real Estate Rookie Podcast (#51 - Kevin Christiansen) last night, and the guest (from Pennsylvania, I believe) was recounting an anecdote of how he stumbled upon a FSBO (sign in the yard type of deal).

Also, it is the lenders job to counter, so I would recounter at a lower price.For instance, say you started @ $100K and they came back @ $119K, then I would go back no more than $109K.

As far as recounting my input and dissecting my profile, I appreciate that as well and I am aware that it needs attention.  

I made a low-ball verbal offer of like $130K and the agent came back at me with a counter of like $160k at the same time giving me his whole spiel about how hes been doing this for many many years and hes never ever seen a bank drop that much off there listing  price and telling me don't  even think of trying to re countering Anyways I'm no experienced realty investor infact this is my first foreclosure purchase so I don't know where it came from but after the agent got done telling me how there was no way the bank would budge off the $160k I pulled him aside and said I have a side deal for you and told him I'd give him 10% cash of any amount below the $160k next thing you know the price dropped to $130 My claim to fame house is worth like $300 now :)

So I submitted an offer yesterday, received counter and re countered, now awaiting response. 

At a commencement speech, Apple founder Steve Jobs once said, "it is ok to fail forward" as he recounted his many failures that lead to his success.

We counter the original offer (400k) and then they recounter with with 390k and we accepted.

Regarding taking pictures, one post I read recounted how they make the tenant take photos of everything from the tenants cell phone while doing a walk through, then has the tenant email the photos to the landlord right then, as proof of condition of apartment at the time of the walk through, which I thought was brilliant.

The 121 exclusion we have today is not the same as decades past, so some older people recount what they had to do and don't realize it doesn't apply anymore.