That little detail should have been explained to the Sellers (and his Lender) when the Offer was first presented . . . . the requirement is mentioned in all of the HomePath Brochures.
You'll have to up the Offer by $2000 in order for the Seller (or his Mortgagee) to have the $2000 available to contribute to HomePath.
That $2000 is what keeps HomePath in business, and I think it's been a strict requirement for at least the past 10 or 12 years. If you can work some magic to get them to make an exception, let us know . . . . because it'll be the first.
I've done several of these, and the $2000 has always been there . . . . I don't recall doing it on a Short; but it's got to come from somewhere (out of the Commission ?).
I'd be looking for a different source of Financing unless you can sweet talk the current Lender into contributing, or Buyers will pay that much more so that it's a wash.
You or the Buyer's Agent should have mentioned this earlier.
Good Luck !
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"