I understand that 3% or 6% is the standard seller’s contribution. If a seller agrees to this contribution, can their lender still decline? Ie, Can their lender offer 0% contribution towards closing costs?

I currently have a bid in on a short sale for 150,000 with the seller to pay 5,000 to closing costs. It has been a few weeks now and still no answer. I was thinking of raising my offer to 158,000 with the seller paying 2,000 to closing costs. The house is listed at 174,000. The realtor says I should try going up by 5,000 but I really like the house. Do you think they take this offer?

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Does the seller pay the mortgage, taxes, utilities on a house with an offer waiting for bank approval? Once the bank approves and accept the short sale offer might there be additional charges if the seller has not been paying mortgage on a home where he no longer lives? If they accept my offer do they often come up with other charges left behind by the former owner?