Hello again Amanda, David and Marlene are correct in that an accurate answer depends greatly upon how far along in the process you are, and also the justification for backing out... The first question I would want to ask is; have you or your agent received anything in writing that the bank approved the short sale? Have you or your agent received anything at all signed from the seller for that matter? There are several ways in which a buyer can back out of a deal without any penalty, but depending on how long you've been in escrow the Liquidated Damages clause may be in effect and you may loose your initial good faith deposit. If you could provide us more information (timelines and reasons) we may be of more assistance, but without actually seeing the contract we'd all still be speculatingâ€¦ So I'd highly recommend having a confident legal professional review your actual contract to provide you with an accurate answer.
The second question I want to ask is where is your Realtor that wrote the offer on your behalf? When working with a buyer the agentâ€™s main goal is to not only find the desired house for the most affordable price, but once in escrow the buyerâ€™s agent has a fiduciary duty to the client to protect that deposit check. If the deal is not what you initially thought it to be your biggest advocate in getting you out without penalty should be your agent. Best of luck, and I hope this pans out well for you.