I am in California and have a situation where the 1st is being serviced my Greentree for FNMA. After 2 months I only have a "verbal approval" which I got a week ago and still nothing in writing. The 2nd is with RBS and I got an email from them saying the file has now been assigned to the "recovery" department (basically they have written it off) and this department is insisting on being paid 10% of the balance. Which means the payoff went from $3000 to $5000.Will FNMA accept that?? I don't think so. And I am in California and with the new law passed in July regarding short sales etc will not allow Banks to ask sellers to pay cash contributions. The guy with RBS says because the loan has been written off, that does not pertain to this transaction. (Not that he said the money needs to come from the seller) Any thoughts on my dilemma??