Can a short sale bank ask for above their BPO value?

Selene BPO value came in at 375K and they are denying it countering at 430K. Can they do that? If not who can I report this to? 

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Technically they can do anything they want.  Maybe get the buyer up a small bit more.  I would also ask for a copy of the bpo.  You also have the right the request a value dispute.  None of these are a guarantee but a few options to go from here.  You can also try and submit a repair estimate.

Any updates??? How did it work out??

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