I am not looking for Expert Tax or Legal advice but can anyone give a general explanation of that process?....

If it's under 600, there should be explanations for it.

You don't need to explain yourself any further to him.When I return an application with an explanation why (I use a cover sheet and simply check off why it was rejected) I then block the applicants phone number in my cell phone.Gail

Thanks @Paul Caputo  @Sam Shueh for your explanation!

I tried to get an explanation how one he nations hottest markets could have a minus 6% adjustment.

Investing in vacation rentals or specific geographical areas, etc.

I thought I did a good job of rebounding after my explanation, but overall, I was disicouraged by the seller's reaction. 

The buyer is responsible from August 2016 forward.I think I confused the explanation but hopefully not and explained that correctly.

In trying to communicate what this looks like and justify her explanation that this is not an increase in the purchase price-the attorney sends over the HUD- the HUD reveals  the commission break down and brokerage representing the seller is scheduled to receive roughly $2200 more in commissions and keep EMD of $2500. 

We also secure the property with hasps and padlocks.All this is done for $150-200 depending on geographical positioning on current routes.