Short sale addendum

[Mariah Jeffery]

I made an offer on a short sale duplex in Oct. and have been getting sent lots of documents to sign since then. The last thing I heard from the listing agent was as follows:

"Indications are positive with the Lender as they are finalizing documents to include updates on your Pre-approval letter and Seller Documents. Attached is an Addendum for your review, signature and date."

The addendum states the following "Seller to pay $3,900 in buyers closing costs. Buyer to pay negotiation fee to Loss Mitigation Services in the amount of $3,980." Is this typical? Why would the seller do this? My lender limits me to having the seller pay a maximum of 2% toward my closing costs, which would be $3,400 in this case. Should I refuse to sign or tell them I'll only pay $3,400 of the loss mitigation fee?

Would they do this with more than one buyer, or does it indeed look like the bank is preparing to accept my offer?

Thanks,
MJ