With short sales, many times the seller doesn't know that their home needs to be a short sale and agents often don't inquire about their financial status until it is brought up. The seller may initially list their property at a price that to them is safely above the amount owed to their lender.
As sales normally proceed, prices are dropped in an effort to identify a serious buyer and at some point the seller will come to grips with the necessary fees for closing. All of this, happening after the fact, sets the stage for you being in the situation in which you find yourself.
As far a your legal rights are concerned, consulting an attorney on this is advisable.
Tom Brady SFR, e-PRO, SRES, GREEN, BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
#1 Listing & Selling Brokerage in NY
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803