Legal Question in Real Estate Law in Florida

The bank does not have to grant you a short sale. They are essentially doing you a favor by accepting a smaller payoff than the amount actually owing on the loan. They want to make sure you will not receive any financial benefit outside the closing. Using relatives as part of the short sale transaction raises red flags for obvious reasons.

Did you check your agreement to see if this was true? Unfortunately, you may have violated that agreement because your agent is a relative. Many short sales are denied for a variety of reasons. The lender has no obligation to grant you one and may even hold you to a deficiency, rather than waive it. If the lender has filed a foreclosure lawsuit against you, I suggest you consult with an attorney about defending yourself in that matter. If they have not and you want to try for another short sale, it will probably be a good idea to use another real estate agent. Good luck!