Proof Of Funds Required!

This condo that I want to make an offer on is an REO at 47k. They only except offers with 2000 earnest money and certified proof of funds.

I only want to offer maybe 35k, and I don't have that cash laying around. I own a condo worth 120k right now, with a 1st of 10k and a second of 14k. I know I could refinance...but it would be a total waste if I did that and they just rejected my offer, or if during that period of refinancing they sold already.

Any other options here, to get an offer accepted....THEN refinance?