6 days ago I entered in to a contract with a seller, my contract has a inspection contingency and a counteroffer contingency, I am well within my 10 day due diligence period and I have decided to exercise my inspection clause after my partner pointed several concerns a counteroffer was also made and the seller turned it down, I emailed him with a written notice of cancellation, I went to the title company and they basically said that he has to give his  approval to refund my EM, now the guy is dragging his feet and doesn't answer his phone when I call, and the title company says that their attorney has to look over the contract and decided how my EM should be disbursed!

What he then did, was proposed a new agreement, and you counter-offered with a new lease agreement.  

Our house has an updated kitchen with granite and updated appliances, I'm thinking is worth $360 to $370+.My RE agent said we could give a counter offer, is this normal in any scenario? 

I just signed papers on the sellers counter offer and I should close in two weeks.

Is there any acceptable clause or stip to allow for making multiple simultaneous counteroffers, such that only the highest response from the buyers will be binding?

Why would they counter-offer if they don’t want to sell?

We agreed to a counter offer on 4/5 (I was not aware of the entry of foreclosure at the time).  

@David Kim I wouldn’t want to let them know that it’s causing you any heartburn... they will “smell the blood in the water.”Maybe you could counter offer and agree to the reduced rent if they go ahead and lock into a renewal period.

If so was this submitted with your initial offer or with your counter offer?

If you win an auction, and the bid is less than the reserve they will send you a counter offer usually after it's over, which will basically give you an idea of where they are.