You have been paying rent for 5 months on a property you've been occupying. I assume you've got some sort of lease agreement saying that you'll pay rent. But you say "I did not pay rent for this past month." Why not? Unless your lease explicitly excuses you from paying rent, you owe the rent. You're living there. You're renting. So (unless the lease excuses you from paying rent) you owe the rent.
Are the sellers in breach of the short sale agreement? Depends on what the agreement says. But--as a practical matter--no. These things happen with short sales all the time. You just roll with the punches. You hang in there until all the "Ts" are crossed and the "Is" are dotted.
But now you're behind on your rent, probably in violation of your lease. You say you offered to pay half of the rent. Why? Are you only renting half the house? No, that's not it. You're suggesting you've been injured in some way by the possible error of the attorneys. But what's the injury? You've still got a place to live. The short sale is proceeding? In what way have you been injured?
Now, if you feel you've been injured, sue the attorneys. They're the ones you say are responsible. But, instead, you're withholding rent from the sellers who aren't responsible. That doesn't make sense.
First: Speak to your Realtor. Get his/her advice. Second: Speak to your lawyer. Get his/her advice. I'm only guessing, but I suspect the advice may be: Pay the rent you owe.
As we see it, your delema may be directly related to not having legal representation on your behalf. If you have not been working through an attorney it may not be too late.......
Generally speaking, when the other party has an attorney representing their best interests, it's always good to consider doing likewise!
I asked for months if the lease drawn up by the sellers attorney and real estate agents was legal and was never given a direct answer to the question. I asked who owned the house, the bank or the sellers and again no answer. I assumed that since I was paying the sellers that they owned the house still and paid but then in May I found out that the bank didn't know we were living in the house and I was told it was illegal for us to be in there. My agent told me that they would have tape on the door and change the locks if they knew we were in the house.
I think the attorney and agents have lied to me and my husband all along to get this deal done, not caring what the cost is.
Just for the record. The June 25th settlement date was delayed because the sellers attorney forgot the include 35,000 in attorney fees and the sellers don't want to pay it. The attorney was away for 2 weeks so because of his mistake we had to wait for his return.