So many other questions. Where is the money from your loan. Are you being charged interest on a loan that is sitting in escrow.
You really need an attorney! How can tthe title company let you or anyone esle for that matter believe the sale concluded when it didn't. It is pretty clear that you don't own the house at this point because that will only occur when it is recorded with the county.
We've done our part and went to the closing table. How can the seller not "HAVE" to adhere to the contractual purchase agreement? Isn't it fraud when you are told you can own your first home if you obtain financing and upon obtaining that financing and actually getting to the closign table be told you have no home?!! How is that legal??!!
Carl Monday here I come!
Second, ask your Realtor what the status is.
Third, if your Realtor doesn't know, ask the seller what the status is.
Fourth, I'm unclear whether this was an actual short sale, or whether the seller was expected to bring money to closing, and didn't. I'm not a lawyer, so this isn't legal advice. However, if it was a short sale and payments aren't being made, it's headed to foreclosure and soon the bank will own it. If it isn't a short sale and the seller's trying to round up the needed money, is the seller behind on payments? If so, it'll progress to a foreclosure and the bank eventually will own it. If the seller is current on payments, then you're a tenant in the property. (If so, do you have a lease? You should.)
You really have to determine what's happening to the ownership of the house while you're sitting in it. And, in any case, you need to resolve this as soon as possible.
So: Lawyer. Realtor. Seller.
Hope that helps.