A little long so I'll set up in bullet points:

• This is a HUD short sale serviced by Chase.
  Only one loan.
• Originally began submission process on 2/27/11.
• On 4/11/11 a negotiator was finally assigned. Return calls and responses from her were non-existent. Took many times escalating to two levels of supervisors above her to get a response.
• First time I actually had contact with the negotiator was 6/22/11. At that time she said the file was into her supervisor for approval, but to go ahead and list the home for $42,000 along with the other terms that would be in the letter when she could get it to us. After almost another month and no contact from her, we finally received the ATP with the official price of $42,000 on 7/18/11.
• By 7/27/11 we had an offer and estimated HUD which was faxed to her. Nothing...nothing....nothing! All the while I am calling at least once a week if not more.
• On 8/25/11 I talked to customer service who stated that the offer was received and the notes from the negotiator stated that it meets all guidelines outlined in the ATP.
• On 8/29/11 I received a call from the negotiator who told me there was "some kind of mix up" when the file went from her desk to the monitoring desk and back again and some parts of the file were lost. She said she had rebuilt some of the file, but needed me to send her the hardship letter and the financial worksheet. I promptly refaxed within minutes. I then received another phone call from the negotiator just a few hours later stating that one of the things that was lost was the original appraisal and she had no choice, but to order a new one. All parties were extremely unhappy...to say the least...but we were left with no choice that I could see. The appraisal was done on a rush 8/31/11 and returned to the bank on 9/6/11.
• Finally received a return call from the negotiator today (9/12/11) stating that the new appraisal came in at $97,000! WHAT????? I told her there is absolutely no way and asked what we needed to do to dispute this value. She said we could send in comps for the same timeframe as the appraisal, but I can't use any short sales or REO properties. I then explained that the the area is almost 70% distressed. NO WONDER THEY CAME UP WITH THAT RIDICULOUS VALUE!!!

Problem still remains...we have an approved ATP at $42,000 that doesn't expire until 11/15/11, a buyer that wants to buy at the approved price, a seller that needs to get out of her home, the buyer's offer meets all of the guidelines...and now we have this ridiculous value that we have to dispute. The buyer is FURIOUS!!!!!! Any advice on how to approach this situation?