Working With Two Banks on A Short Sale???

We all know that Short Sales are very tough to do because of the time it takes to get an approval from the bank. Dealing with one lienholder can save a whole lot of time and stress because there is only one lien against the property, but when dealing with more than one lienholder can make things a little rough. I am currently working on several Short Sales that are in contract and being reviewed by the bank. We are about two weeks away from closing and I have currently ran into a small obstacle with the negotatior of the junior lienholder's bank. I have received senior approval on the first from the primary lienholder and they have notified me to inform the junior lienholder to release the lien and that they will pay them 5,000 dollars out of their proceeds, as a credit to release the lien. I have called the junior lienholders and notifies them of this and the negotiator comes back to me and says that in order for them to accept to release the lien, they would have to receive an additional 3,500 dollars from my clients! Now, isnt the whole reason for doing a Short Sale becasue the client is in a hardship and cant afford to make any more payments on the home? I do not understand what these banks are thinking. I strongly believe that the banks have put themselves in the position they're in to where they are taking enormous losses and attaining a large inventory of REO properties where they have to pay inventory fees, maintenance fees, and all of the other fees they have to pay that are associated with managing the property through the REO Process. If any other agents viewing this have run into this same problem, please leave your comments and if you have any advice as to how to get past this problem, it would be highly appreciated. Thank You for viewing!