I have been trying to do a BOA short sale for over a year. We are now on our 3rd buyer. The foreclosure auction is set for October for my seller's property which was purchased as a 2nd home.  This last time BOA asked for $5,000 from the seller and we responded that the seller would borrow the money to bring to closing if BOA would give us a letter stating they would release the lien and not come after the sellers for the deficiency. 

Well now we just got our approval letter and it is the standard deficiency letter saying they reserve the right to come after them later.  I contacted the closer and he responded with this statement in his email: "The deficiency tool was run to see if we could remove the deficiency language of the approval letter.  The loan didn't qualify to have removed. Please verify if the seller wants to move on with the short sale.  Thank you. "

My first question is . . . what the hell is he talking about?  My second question is why would my sellers want to pay them $5,000 if they are going to come after them for the deficiency later anyway?  My third question is what do we do now?