First, this sounds somewhat complicated, and since we aren't part of the transaction, no agent on here can give you 100% accurate answer. Ask your Realtor. But I can say it's common for the bank (seller) to not want to pay any additional fees. That's just how it is with short sales. They are already taking a huge hit. They don't want to pay any more than they need to. There could be a high HOA transfer fee, or a reserve deposit, or whatever. If you want the property, you need to pay that.