I was recently contacted by a client whose house we had tried to sell as a short sale a year ago. Despite bringing multiple offers to the lender in the $250,000 to $260,000 price range, the lender refused all of them. The property eventually went back to the lender and was sold for $207,500. My client has now been sued by the insurance company for the shortfall of $180,000. Of course, there was no incentive for the lender to sell short, as they knew they would be reimbursed by the insurance policy. As my client says, everyone’s getting bailed out but the homeowners.