Wondering if you've had this situation, if so, any suggestions?

Have a young active duty military lady with 3 children that was transferred to England.  We have short sale approvals on her home for 1st lien BOA and 2nd lien Greentree BUT United Guarantee MI is requesting $20,000 from her to be payable in $200 per month payments, interest free.  Owner can barely make ends meet where she is now.  I know the banks/.mortgage companies are regulated as to demanding money when their active…