Thanks, we're trying to figure all this out. I spoke to the attorney yesterday, who also didn't seem to be aware of the seemingly 'final negotiation'. I guess that 'final negotiation' was between the agents, so it may have been worth as much as the hot air it was spoken with, at least on the seller's side. Our agent was very upset/angry about the letter that the seller's attorney faxed over because our agent was also under the impression that everything was worked out and that we were just waiting for a closing date, too. THis is so frustrating. We're in a rental, and now are expecting a baby, and we really just want a permanent place to live. When we started this short sale process, we didn't know that we were pregnant, so we may not have gone this route when attempting to purchase a property.

The agent's previous answer pretty much covered everything. You need to discss all of this with your attorney, especially the part regarding disclosure.

The answers to your questions depend on the details contained in your contract and written communications with the other parties. Only your attorney or short sale facilitator knows enough about those details to answer your questions.

Illinois License law requires anyone with a Real Estate license to disclose that fact when entering into a contract to buy or sell property. Contact the Illinois Dept. of Financial & Professional Regulation (IDFPR) in Springfield regarding that alleged violation.