You can negotiate for relocation funds, however, every lender is different based upon who the investor is on the loan and whether you have a 2nd TD. If so, in negotiating the 2nd, most find they will argue to disallow relocation funds as the holder of the 2nd typically take $3,000 to $6,000 for the holder of the first to settle. Sometimes the holder of the 2nd TD asks the buyers for additional funds to settle the 2nd. In other words, be prepared for most anything.
Beyond our own experience in selling short sales, we would recommend your agent uses an experienced short sale negotiator.
Mark & Kari Shea
Shea Real Estate