With out knowing everything about your situation it is hard to say, however if you have a second loan it could be very possible that the second is requiring that you pay (it is usually 10% of the loan amount) because they might have an insured loan and that could be the amount they would get from the insurance, so they will not settle for less than what that amount would be. It could be because the value of the offer and the value of the BPO is $10,000.00 apart. This is something that your realtor should be able to explain to you. Unfortunately the lenders have rules and investors that they have to answer to, so yes they could refuse to allow the short sale to go through because you can't pay the $10,000.00.
I don't know why you agent hasn't explained this to you.
First this is what the bank has countered at. Meaning they will accept the offer that was presented but only if you the seller take out a $10,000 loan. Its a way for the bank to recoup some of their expenses. I don't know why they are asking for you to pay it out of pocket? Most Banks ask for the seller to take out a loan, and present it with a interst rate and payment plan.
Ofcourse you can say no. Its up to you. Most agents like myself negotiate this for their clients. I explain that my clients are in no position to repay a loan for this amount under these terms or any other terms. I go over their hardship again to futher explain their situation. I explain how it is our duty to the community to get these short sales to closed and occupied by homebuyers. Having a vacant foreclosed property in the neighborhood is a safety issue, and de-values the neighborhood. I explain a new government program offering Asset Managers a $2500 bonus for closing short sales and NOT turning them into a reo.
There is alot your agent should be doing for you, or advising you about the situation.
How many short sales has your agent closed recently?
If you need to be referred to a new agent in your area, or need more information.
Please don't hesitate to shoot me an email.
Best work with them very very easy, nice, state you dont have $10K work with a monthly number you feel comfortable with... keep trying banks dont want your home, I have personally turned situation around for friends who were in trouble, no huge down payment , reduced monthly amount where all parties happy with executed agreement on both sides.
Dallas Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
They can decline you for any reason - and very often do just that. Don't pay them any money. It won't be any guarantee that they will process a successful short sale. They are just trying to get you to cough up some of the money you owe them for back payments. You are doing a short sale because you canâ€™t make the payments. Seems logical to everyone â€¦ except a bank. Go figure.
If they will not cooperate with your short sale, then, unfortunately, foreclosure is the final option.