Well, the "speedbump" turned into a roadblock, so here's the story in a nutshell.
My MIL found a house she thought was perfect for us, took pictures and drew a floor plan. We liked it well enough, too, so made an offer. As it was VA foreclosed, we made a rather low offer, as we'd been advised. They countered by taking $900 off the listed price. We countered by meeting halfway. They said "yes." Then the next day they said the person who said "yes" didn't get authorization. So we waited. Eight days later (yesterday) they finally decided that they would NOT accept our offer, and sort of countered with taking another $1000 off. As Bob says, you can talk that much off of a used car. Oh, and by the way, they have another offer coming in on Monday.
So, MIL found out the bank with whom we are dealing is Bank of America, and they are notorious for doing things like this. I'm not sure of all the "rules" but I know when we were interested in a house that had an offer on it, the real estate agents wouldn't even let us view the place. But when we were negotiating a contract, they were apparently holding out, encouraging other offers.
Oh, well, we wanted God to give us an answer and He did. So Mom, Janice; feel free to start looking again. We are going to try not looking until after our vacation, since we may not be available for awhile. (I'm not sure if any of our cottages have internet.)