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In response to should you re-write another offer on REO. I strongly feel at least here in California that if you do not have a cash deal you will be beat out especially if your client is FHA, VA or 25% down. My client and I have written many offers on REO properties to find we were bid out even after offering over asking on a conventional loan with 30% down; still to find we were beat out. You and your clients would have a better chance of getting the property on a Short Sale if the Listing Agent is performiing correctly and you and your buyer are in first position. If you are in a back up position, make sure that you do receive a counter offer with a PAA; purchase agreement addendum to ensure of what position you are in. Hope this helps and never give up hope.