Does losing unemployment status reduce probability of short sale approval? (credit, second mortgage)

[jco]

My husband has been unemployed since January. He searched for a job for eight months with nothing. He went back to school and continued to search for a job this semester. We listed out his classes for unemployment, and they still approved his benefits. At this point, we're vested in his education, and he wants to stop looking for a job next semester and just continue with school. If his status changes from unemployed to student, will it make us less likely to be approved for a short sale?

Our house is in AZ; we are in TX. We bought it for 220k, owe 165k, and it's worth 110k. We have perfect credit, but cannot carry two mortgages when our renters' lease is up in July. We sold our primary residence this year, and we don't have any second mortgages on the investment property at all.

[2bindenver]

I do not believe it will affect the possibility of the short sale being approved. How long have you had an offer in to the lender?

[jco]

We haven't done anything with the lender yet. The lease doesn't run out until July, and we don't want to kick our renters out before then.