Weird situation here that I basically don't understand.  I've been doing short sales for clients for a few years and have never run into this situation. 



Client preapproved for HAFA with a list price of $146,000.  I thought it was inflated but put it on the market anyway.  Got an offer for $128,000.  Counteroffer came back at $146,000.  Buyer walked.  Got a new offer from a new buyer at $138,000.  I submitted this offer with an appraisal of $137,500.  The borrower owes approx.…