Unfortunately a short sale is not a right. It is up to the investor who owns your loan as to whether they will allow it. Some Investors just don't do short sales. Before you do anything, call your servicer and find out who owns your loan and ask if that investor participates in short sales. If they have approved other short sales then, as others who have answered your question have said, you may want to contact an attorney. Although, I think you should contact your U.S. Congressman's office first, to see if they can help. They will help you for free ( your tax dollars pay for their help.) I have found our local U.S. Congressman's office very helpful in getting a positive outcome for my clients.. Before you contact anyone make sure you have all your documentation ready. You should have all of the correspondence from your lender/ servicer and everything you sent to them to verify your hardship. I would ask your Realtor for a market analyzes for your property and their notes on the contact they had with the lender/servicer. Gather anything you have to support your argument that your short sale should have been approved. Make an appointment with an aide at your Congressman's office and bring everything you have support your argument that you should have been approved. If they are unable to help, then take it to an attorney. However, you have to remember that lenders/servicers are encouraged to do short sales, but not required. Good luck to you.