This just happened to me at the beginning of August by Wells Fargo Bank. I had two offers on the table that were both short sale properties here in Fresno. The sellers' accepted my offers, but Wells Fargo decided to foreclose on the properties. My offers sat with the bank for over 3 months and Wells Fargo never once responded to either one in that time frame.
In both cases Wells Fargo dumped the properties at the court house steps for nearly 20% less than my offers when the opening bid was listed. My offers were right in line with today's market values.
Short sales are definitely not short. This real estate market is in trouble when it comes to short sale transactions going forward, when you see how bad the overall process is from the banks who hold these mortgages.
I have access to foreclosure information in California, so if you'd like me to verify the status, don't hesitate to contact me.
Heather Peck, SFR