A lender can decline a short sale for just about any reason, so long as it doesn’t violate federal discrimination laws. A lender is under no obligation to approve any short sale or modify the terms of any existing loan contract. If a lender does approve a short sale it is because that lender believes it to be in their best financial interest to do so.
We have consummated quite a number of short sales involving borrowers who were not behind on payments. In those cases, we were able to demonstrate to the lenders that the borrowers would soon become delinquent should the short sales not be approved.
For more on this topic, visit www.DestinFloridaRealEstate.com or email us at smith@realtor.com