We were in contract and due to circumstances on our side (funding not available in time), fell out.  At the time, the house was an approved short sale from BOA for $314,00 in a town that the home prices are not rising but 1% a month (if that).  The selling agent spoke to BOA about us having to back out but that we wanted to enter into contract again, at first possibility, and she said that's fine...we just needed to re-submit a contract, for the same house, at the same amount as agreed upon by the sellers and ourselves.  We submitted our contract on Sept 1st and BOA moved the trustee sale until Sept 27th so we figured that it would close much more quickly.  Not so...the bank got another appraisal and they counter offered (which they NEVER did in the first contract) for $350,000 stating it was the Fair Market Value now.  We discussed with the selling agent and ours and he said to counter the offer, staying firm on our original price.  We were told BOA would counter again and go from there.  We have been in a contract (both times) since April and have really been patient...understanding it fell out first on our behalf.  The house has been listed since May 2010 and fell out two times prior with BOA counter offering both before.  Then we come along and they don't counter, the first time but now they counter almost $40K more that they previously agreed on. 

My question is...in any of your experiences with BOA on counter offers, have they come back asking alot more and eventually settled for quite less?  How many counter offers (both parties) until BOA will say forget it?  Like I stated, the house is scheduled on the court steps the 27th and we don't have much time.  I had an appraisal done (with the previous contract) and it was appraised at $375,000.  Even at 80% settlement, it would be $300k.

Experience on counter offers?