My veteran seller is PCSing, and they bought the home at the top of the market.. so are having a hard time meeting the 88% requirement at the current market price.

I was thinking that if they made a good principle reduction now, that would let them lower their price to be within market parameters and get a buyer and still meet the 88% net, this would work out great.

But I'm wondering if we would be shooting ourselves in the foot,, that their lender would not cooperate if they see this reduction right before the sellers send in their compromise application.

Right now they are looking at paying about $30,000 out of pocket to sell without the compromise.  Making a $5000 principle reduction would be a great option for them, get them into the price range to be more competitive and get their house sold,

Advice would be greatly appreciated!