I have a strange one!

Got an offer on a property, BofA was first, Citi Second.

Citi is short, BofA is not.

Loan is for $67,000 with Citi

Net to Citi is $6750

I get a call from a Citi loan officer locally asking me to send her the contract and HUD-1, I sent it.

She informed me that Citi needs to net $25,000 or they will not approve the short sale. 

I call Citi loss mitigation and was told that they did not have a borrower at this address or loan number.  I call the citi loan officer again and she confirms that the borrower does have a loan with Citi.

Why would a local loan officer be involved with this? 

Could she be telling me what she thinks Citi needs to net because she does not handle short sales normally? 
I have always been able to get them approved for 10% of the balance with Citi.

Very weird situation to me..