I offered less than half what they had it listed it for and they came back with a counter offer which we went with.

Therefore the counter offer is ~$818K.I understand that in reality I would probably be closer to CAP rate of 6.2% and instead of using PRO FORMA rates I would use actual rates, and I would look at actual NOI.

The mitigation company gets the short sale package together, gets it through the process (the hardest part), and then gets an approval or counter offer to you.

what they did was basically a counter offer don't you think?

. ($0 estimated repair costs)We are waiting to hear back from the agent if we need to counter offer.  

So any offers you make or any counter offers that come your way are bounced between the realtor.

let's say we offered 120k and Hud counter offered with 130k (original 145k) are HUDs more of a stubborn bidding process?

Most high-volume agents will do anything to get away from the signing/scanning to save valuable time, but not that relevant for your immediate situation.Also, if there turns out to be several initialed revisions through a counter-offer process, it's good practice to create a "clean" final version of the contract at the end of the negotiation and have all parties sign.

If there were offers and counter offers and the person comes back and accepts the offer previously made in the next six months I would probably pay the old agent.

I routinely make offers on properties that have been sitting for 3-6 months at 50-70% of list price, and it's not uncommon that I'll at least get a counter-offer from the bank.So, consider how many days the property has been on market before you start to think about what the bank may or may not settle for.