Bank denied my offer and countered too high!

[Cameron Tope]

Hello fellow investors,

I'm in a predicament. A property that was approved for a short sale by the bank has now denied my offer (after 5 months) and the bank wants next to retail.

In this scenario I figured I would sub2 the property but I received an email from the short sale specialist saying "Please tell the seller that if she does not do the short sale she will not be eligible to deed her property back to the bank. The only way to liquidate this property will be through foreclosure." 

My question is can I still sub2 the property? 

Thanks for the help!