A few of questions:
1. Are you represented by a REALTOR?
2. Did you sign a C.A.R. form SSA - Short Sale Advisory
3. Did you open escrow, remove contingencies and sign loan documents before you had written acceptance of your offer by the Short Sale Lender?
If your answers to any or all of the above are NO then you have the following problem(s)
1. No REALTOR - who has been guiding this transaction? Without someone negotiating on your side, you can find yourself in a very lopsided contract. You might want to contact an attorney to review your situation at this time.
2. No to the SSA - Do you know your rights and the seller's rights in a short sale? The SSA clearly states that the Seller does not and cannot guarantee that the Short Sale Lender will accept your offer and that any costs out of your pocket are your responsibility. The form also would have allowed for you to NOT incur any costs UNTIL the Short Sale lender approved the sale, by beginning your 17 day inspection period at that time, opening escrow and depositing your good faith deposit check at that time, and basically beginning the transaction only after the Short Sale Lender had provided approval.
3. NO to this question means you jumped the gun. Until you have WRITTEN approval of the Short Sale by the Short Sale Lender, you do not have a deal. They have to accept your purchase price as payment in full and agree to pay off and or remove all liens, so you can obtain the property free and clear of liens (which you will need in order to obtain title insurance). I would find it hard to believe that your lender would have drawn loan documents without this, so hopefully you have a written approval. Once that is obtained, I am not aware of how the bank could continue to hold up the closing. This document is their closing instructions to escrow and title. No further action should be needed.
Contacting your agent or an attorney may be your most prudent move at this time. If you would like to contact me directly for further discussion on any of the above feel free to do so. Dare to Dream.
Real Estat Consultant
RE/MAX Palos Verdes Realty