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I am working a GMAC first and second. Last year (2011) I had it approved and the buyer could not get financing. It took months to get a new buyer. The negotiator now tells me that the loan was discharged   and now he is acting on the file like it was his own. No BPO, no nothing. He called me 30 minutes after uploading all the final requested documents and said he wanted to reduce the commission by 2%, give the second $3,400 instead of $3,000 (both GMAC) and get a $2,000 seller contribution. The seller used this home as his primary residence and then got a job transfer. He could not sell the home in the current market so he rented it and later decided to short sale it. My question is, if he qualifies as an owner occupant under the IRS government guidelines, must live in the home for 24 out of the last 60 months, does this still qualify this property as an owner occupied property by bank standards? If so I do not think the bank can require a cash contribution. This will also effect the sellers 1099 tax status. I also have another similar one with different lenders. None of these loans are Fannie or Freddie. I need to respond to this quickly so any input would be appreciated.