Hi All -

I have a shortsale listing and the servicer is PHH, but it is a Fannie Mae loan. 

We originally listed property in February-2014 for $129,900 (seller would not be short if we sold for this value).  We did not get any offers and seller finally decided that he MUST do a short sale, so in June-2014, we reduced price to $119,900.  Still no offer or activity.  So, 2 weeks later we reduced price to $113,900.  Soon after, we got an offer for $112,000 from an owner occupant, but it was a CASH offer.

All financials had been submitted, so we got a HUD1 and submitted the offer.  My first contact with negotiator was July-8 and he told me he need updated paystubs and a couple of other things and then he would submit to Fannie.  Got him everything he needed by the next day.

Today, I get a counter @ $121,000 and they want a promissory note from seller for $10,000, 0% interest, payable over 5 years @ $83.33/month.  (GREAT TIMING, BAD ANSWER)

So, my question is this - has anyone else seen a requirement for a promissory note - in ARIZONA???  I think this is crazy - especially because I don't think at $131,000 (121,000 + 10,000 promissory note) we are short at all.

Does anyone have the latest Fannie Mae valuation dispute paperwork?

HELP!!!

Thanks, CAT