I have a short sale that was just denied today by Freddie.  Servicer is Flagstar.  The borrower is married to Active military (husband not on loan).  Husband received PCS orders for relocation in June. Flagstar told me today that Freddie denied the short sale because borrower is not in military, although husband is military, his PCS does not qualify as a hardship for borrower.

Has anyone experienced this type of situation?  Have any suggestions?  I'm going to attempt to escalate as well as contact local congressman and file a complaint with state. 

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