I've seen a lot of recent posts on SPS denying sales for one of two reason 1) because of low offers or 2) because a previous short sale was already attempted
Neither of these should stop you from completing your sale.
SPS has some sort of racket going. It's up to you to make some noise. We have noticed them doing this in two states we work in. So far in one state, they've backed off when the AG's office got involved. They gave our seller a denial based on the fact earlier in the year they had a marketing and selling period of 75 days. We weren't involved then. No offers were presented.
Here is the issue. Banks want MARKET VALUE for short sales which are not MARKET VALUE, they are a liquidated value because of the compulsion to sell so it's impossible to compare them to market value sales and their selling time.
We were able to show SPS that their 75 day marketing/selling time was impossible. Even traditional sales on the market in this one county took longer. SPS is doing a disservice to their investors. So the ONE short sale on the market in that county took 179 days.
Fight back. Involve your AG's office, or the CFPB (which I personally think sucks these days) but make noise. Escalate to Ombudsman, who also rarely does something but make noise. Don't let SPS discourage you. Keep up the fight for your homeowner.