In obtaining a short sale approval, earnest deposit checks are not cashed but until the short sale is approved by the bank. => The key player here is the agent involved.
The bank's foreclosures are handled by a legal department that is separate from the short sale department. This legal department proceeds with the foreclosure process unless they are contacted either by the bank's short sale department to hold on to the foreclosure because the short sale has been approved or by the property owner to reinstate the loan.
A real estate attorney could help you to scrutinize who is at fault here. http://www.avvo.com
While the Bank is processing the approval of the Short Sale, the Foreclosure process does not stop.Just because the Bank has an offer in hand does not mean they have to accept it.
You will be able to get your deposit check back. You never opened escrow correct?
Hope this info will help you! Â Â
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Heather Paul, Realtor
Sounds like you did not have your own representation? Your agent should not have allowed your funds to be at risk. If the bank had not given approval at the price you offered, you really don't have a deal. I agree with the other posts that indeed your deposit should be held in escrow, but even at that, I would not have allowed my buyer to submit ANY monies until we could actually open escrow. You would not want to tie up your deposit for several months especially if you were looking at putting offers in on other properties that may not be selling short.
Call your agent (if you put the offer in through your own agent) or it sounds like you maybe just used the listing agent? Another reason to have your own representation and work with a buyer's agent who will work diligently on your behalf.
Hope you can get your deposit back without having to get into litigation..would be much faster and easier if your funds are being held in escrow!