Servicer is US Bank and they are countering at $205,000(what borrower owes)when best offer/contract was $162,000, FMV nowhere near their number.  I don't think this makes sense - need to talk to Freddie Mac.

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What is the hardship? 

If the servicer does not see the hardship, they will counter at full payoff. I would recommend calling the 1-800-FREDDIE and select option 2. 

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