The bank does not want to negotiate a SHORT SALE! What should I do??? HELP!?

You could always try working with an attorney to do the negotiating for you but it will probably end up being a waste of money. Your mom's situation is rough and I'm sorry to hear this. The reality is the bank does not have to negotiate. If the terms are not fulfilled as stated in the note they can take the house back. Unfortunate and sad but true. Good luck.