I wanted to share some thoughts on CalHFA short sales. They are different from other lenders, and are very strict on how the calculate hardships. I’ve heard, time and time again, from colleagues, that CalHFA never approves short sales. If a borrower’s income has not been effected, they will most likely not grant a short sale. It’s very black & white. But it appears that this is slowly changing. I’m in the middle of negotiating a short sale with them now and my client and I have gotten past their front lines: the Collections Department. Now we are in talks with the short sale department and even though my client has not suffered from a loss in income, we have demonstrated that her increased mortgage payment along with her other expenses far outweighs her income. If the investors approve this short sale, it will be a sign that they are slowly changing their position and will be more amenable to work with financially challeneged borrowers.