Your lender is incorrect as it is has nothing to do with your financing! Unfortunately, many things need to happen to complete a short sale and there are times such as this where everyone must figure out a “LEGAL WAY” to make things work out. The issue is not if the Listing Agent is willing to use some of his/her commission to pay the 2nd Lien what they are looking for, as the issue is if the 1st Lien Holder will allow this to happen. This request can be made to the 1st Lien Holder to have their Written Short Sale Approval Terms note the fact that the Listing Agent is contributing additional funds to the 2nd Lien Holder. If all the facts are presented and agreed up by all parties, the transaction will be able to close with no issues as all calculations and figures must be presented on the HUD-1 Settlement Statement with Full Disclosures! This is how the transaction MUST be! Contact me with any further questions! Good Luck!