I don't know how often I hear from agents that after making an offer,  they got back an addendum from the REO Asset manager.  NO, it is a counter offer.  Anytime,  the terms are changed,  before the parties are in contract,  we should be calling this a counter offer.  The problem is that too often,  the buyers agent is not pointing out the terms that can really hurt a buyer. This doesn't mean that the bank will change their mind but your duty is to make sure the buyer sees the risks.  Let me give you a few examples I have seen recently:

• Jamming the buyer on time:  I have seen the addendum say the contingency period is reduced to 10 or even 7 days.  Unless the buyer is prepared to waive inspections and has their loan fully in place,  this is almost impossible
  
• Pasive Contingency removal: In most states,  contingency timeframes have to removed in writing. Most lender counters say the contignecy will be passive,  meaning that it expires on a certain date.  So, if it is 10 days, if you do not cancel,  it is automatically removed.  Some agents fall into the trap of sending an addendum on the 10th day,  asking for an extension.  If the bank doesn't agree to it within the 10 days,  contingencies are automatically removed,  and the buyer's deposit is at risk if they don't close.  The right thing to do is to write and addendum that says,  based on the property condition,  the buyer hereby cancels the transaction ......unless the bank seller agrees to the following.  Then,  list those things you want to modify;  price, credit,  repair,  longer timeframe, etc