Good Afternoon,

A mortgage company has the right to accept any offer they so desire ... it's not a matter of legality. And, though it may seem they have accepted a lower offer .... it may have been the most "complete" & strongest offer .... there are other terms to consider - proof of funds, closing date, concessions, etc. The short sale process has no "governing" rules & can be a diffficult process to understand.

What can you do? I would recommend contacting an attorney as well as a tax accountant. Both professionals will be better suited to analysis your complete situation and provide proper advice.

I wish you the best.

Rock Solid in Real Estate,
Tami Leliuga
Prudential The Property Place
Direct: 321-863-2233
Efax: 407-210-3773 http://www.SellingBrevard.com

Life isn't about waiting for the storm to pass .... it's about learning to dance in the rain!

I am confused by your scenario, and very confused by the previous poster's response. it has so many spelling errors, I am simply having trouble determining the meaning.

In any case, the debt forgiveness act may impact you - google it - there, you will learn about your liability for taxes relative to this.

You can file a complaint through the credit bureaus and they will have to update your credit reports.

I expect that your second offer was never considered, they want the entire package at once - not in pieces. This is why agents that send offer after offer to the bank are doing themselves, their clients, the banks and the buyers a disservice. But, in the end, your house is sold, your lucky.

Spiceman, I myself have not heard that a short sale went so fast as yours did, before the shaor sael wa acepted by your mortgage compnay. It also seesm that they said you would have to wait three months and the short sale would have to have been set for sometime in December or january by what you have said.
Now when you filld out the paper work, the house wasn't even listed yet with a Realtor, and had the right to pick t the time. This is because the bank does not set foreclosure papers in unless you signed an agreement stating you wiol sign the deed over to them in Lew OF Foreclosure. So Something doesn't souud right. Where did this second offer come from if your home was not listed witha Realtor? If it was by one of the Mortgage People, they have possibly violated a law or two in the first place.
Alos, you should not be getting hit with any tax burden. That was put on hold last year for owners of prioperties that have lived in ther home for two years or more and so on. Also, if the mortgage company agreed to the short sale, then they should not have put such items on your credit report. That was the purpose of such an action. Also being you are the owner still, this should have been a thrid party approval. This means you would have had to agre to the offer first by signing a contract for sale to list, then the offer first, then it would be sent to the bank by your Realtor.
I would make some inquiries and if you get the run around all of a sudden, then contact the attorney general of your state, and or get a lawyer quickly to listen to what has transpired and see what the lawyer says. Someone saw this as a deal and started what I consider an illegal transaction to get what they wanted. You got shafted from what I read. But this is my opinion from how short sales are done here in Florida and other states that I know of. I wish you well.