I have an approved short sale from Citi Mortgage. Freddie Mac is the investor. Short sale approval price is $125,000.00. Buyer is obtaining FHA financing. FHA appraisal came in at $120,000. Citi will NOT adjust the contract price to meet the appraisal price. Buyer can't buy at $125,000 and now this appraisal will stay with this home for 6 months. Anyone any ideas on how to get Citi to accept $120,000 instead of the $125,000?

I even sent them the FHA appraisal but the negotiator will not budge.

Thanks in advance for any suggestions.