Long story short, I just learned this morning - when I called the Short Sale Dept for status (when negotiator would not return my calls) that the short sale has been denied by the investor because the file is incomplete - no tax return or proof of income.

With the original submission, we'd stated that there are no tax returns because the borrower has not filed taxes for many years - he is 87 years old and has no income other than social security and a small pension.  I included a letter from the Treasury Department (dated 1996) that he doesn't have to file.  There was a letter from the homeowner a couple of months ago with the same statement.

I've faxed the negotiator (he still won't return my calls) asking to resubmit to investor, attaching the Treasury Dept letter and reiterating that there are no tax returns because he is 87 and doesn't file and there is no proof of income because there IS no income. 

What more can I do?  My client has been in and out of hospital twice in the past few weeks - he is not well.  And this stress is not helping.