I have a reverse mortgage short sale that I am negotiating. It started out with Financial Freedom and just about 10 days ago was sent to Deval, LLC. Financial Freedom did an appraisal about 2 months ago. Deval is now telling me that my seller needs to obtain and pay for his own "as is" appraisal because he has an FHA loan and he still lives in the home. I've done quite a few FHA short sales and have never come across this. The guy at Deval has a full voicemail and the lady who answers the phone is quite snippy and unhelpful. :) Below is copied from an email from Deval. Can anyone provide some insight? Maybe I'm not understanding these emails from the lender. TIA

If the loan is in a Due & payable status then HUD will pay for the FHA As-Is Appraisal. However, if the borrower I just wanting to sell the property and is interested in a Short Sale then they are responsible for the Appraisal.