It is clearly out of place unless there is some other Compensating factor between the lender and a borrower.

And, the credit of all makers, endorsors and guanators will be viewd and considered as compensating factors in underwriting any loan.

jscott, you are right I did not have contract with the bank, I had the contract with the seller pending the bank approval(which they did not approve). as per the comps we sent them the comps, the house was on the market for close to 2 months and after several price drops I put in my offer based on the comps,the listing agent sent the bank an email detailing the process and the fact that this was the best offer he had received on the property at the end of the day I am not here to bash any bank, they can ask for what ever they want for the property, I just think there should be a more easier process to buy or sell these short sales,you cannot have a negotiator or asset manager sit on a deal just because he or she thinks that the value should be x or y which is not based on fact or reality and I have actually heard of situations in which real estate agents have threaten to sue banks for their compensation after they have brought a willing and able buyer at a fair a price for the listed property and the banks did not want to approve the sale, at the end of the day nobody wants to waste their time, if the bank wants a specific amount for the property, it should not take them several months to communicate that to all the parties involve in the transcation, like they say Time is of the essence

The lender should get compensated for risk.

So, it can be viewed as an increased price to compensate for the lack of interest.

So, if you're going to add value, make sure you add plenty to compensate for the fees associated with selling.

Also depends on how close you might be in carrying the loan without it.I suggest you obtain an estoppel letter from that tenant, search that, and state the intentions of the tenant in staying along with a comment of their past rental history, that will help a lot even as a compensating factor.

For transactional funding, such as a double Close for a wholesaler, you can JV on the transaction and take the "fee" from the assignment fee as your compensation as a partner. 

If you notice below that, it states that it is policy for us to accept compensation from listing broker.

In the end, I had to switch lenders to someone who was able to pull some strings and look at other compensating factors.