Can use some advice in Negotiating with Ascension Capital Group?

This is my first file with Ascension Capital Group. They are asking for $12K on a $80 HELOC.... the seller has included them in a BK and Chase is the investor on the loan.  I have been working this  for 9 weeks, and have gotten Litton, the first to offer $8000, or 10% of the UPB.  My second approval extension runs out with Litton on 6/15, and they will not grant another extension. ACG refuses to accept the $8000, and holding firm at $12K.  They want $4000 more off the HUD.  I escalated to Debbie Mosby and she stands by her negotiator. My concern is if the agents and the buyer's offer to contribute the $4000, the first may want it?  Could really use some good advice?

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