Probate/Foreclosure Question

I have a house that I was planning to purchase for 110k. Just a week before finally closing on this it turns out the banks (Chase) payoff is 7k more than what was thought. The title company did not get an accurate payoff the first time. This makes the deal very tight as it is a manufactured home, and I like a wider margin on these. Is there any chance I would be able to work a short sale with Chase and get them to accept less. The problem is that if the house sells for the original 110k there is not enough to payoff all the liens and it is an insolvent estate. The attorney has said he will pull out if it is an insolvent estate and the house will just go to auction. Is there any chance I can convince Chase to accept less, or are there any other possibilities here?


Assuming that Chase is the 1st TD holder and assuming that they do not want the property back OF COURSE there is a chance that Chase will discount the note, specially if you show them that doing so will net them more money than not doing so.