No. It would be a problem in this manner: The mortgage company must meet certain criteria presented by the mortgage insurance carrier in order to get a short sale approved, and the loss reimbursed in part or fully. One of those requirements is ALWAYS that the seller may not receive any proceeds of the sale. That includes commissions. So, while a lender may allow a seller to get up to, maybe $1,500 ‘cash for keys’ after foreclosure, that’s considered to be different than a seller receiving any commissions or proceeds through escrow (always keep it legal, disclosure is key). The lender simply can not pay the seller in this instance, and still collect on the insurance. Therefore, if the short sale is to stand a chance of being approved, the participation of the insurer is nearly always a factor. Throw a monkey wrench in the insurance payout/approval, and you don’t get a short sale approved.