Oops, realized I should have posted a discussion instead of messaging the group (new here, sorry).

Here's the situation: Short sale condo purchase. 2 months go by and AHMSI puts together an agreement which states their net amount, and allows no more than a $5K credit to the subordinate lien (coming from them). They also charge a 1% short sale admin fee over and above the total sales price. The lender I submitted to has a problem with this because they say the fee should be included in their total net amount or else a change in sales price should occur.

The other issue is that the 2nd lienholder sent their approval a few days later asking for an add'l $6K on top of the $5K. Again, the lender says this is a no-no because the buyer can't pay any seller indebtedness without an increase in the sales price. This also makes sense because AHMSI only agreed to 5K, and any additional money should go to them as the senior lienholder. Strangely, the original loan was an 80/20 Argent combo which now has different servicing companies.

My understanding is that FNMA only allows the lessor of 6% or $6K to satisfy any subordinate liens. Up to this point, negotiations with the lienholders have been handled by the realtor (who is double ending the deal). The realtor is adamant that both the fee and buyer contribution to the 2nd are allowable.

Can anyone shed some light on what is typical and allowed here? Is the 1% admin fee from the 1st ok or does the sales price need to change? Regarding the 2nd's extra amount, I've encouraged the realtor to tell them to pound sand - what would you do here?