First of all, thank you all for the helpful answers. The CAR short sale addendum did contain the "Other Offers" clause: "... Seller may continue to market the property despite acceptance of Buyer's offer, and to represent to the Short-Sale Lender any additional offers that are received on the property". I think we are holding the short end of the stick.
We were countered offer twice by the short sale lender and we accepted the lender's second countered price via phone communication with the agent (who is representing both seller and buyer) and he said that the deal must be closed within 30 days. We were going to get an FHA loan but had to settle with a 20% down conventional loan due to the short closing days. The agent asked me to start the loan application which I did immediately.
The seller signed an addendum with the lender's new price 10 days later. We received it 3 days later and signed it. Escrow was opened 12 days after we signed the addendum. We handed the agent a earnest deposit check and were told that we will have the Escrow Instruction by the end of the following week. By Friday's end, we still have no news on Escrow Instructions.
The turn of event started when my spouse asked a very close relative to make a phone call to the RE agent for info on the Escrow (such as Escrow No., Contact person, the branch locationâ€¦) because both of us could not be on the phone for extended period. After the call, he emailed us the escrow instructions which he received 2 days ago and called me. He called me and said that he will cancel the escrow and did so via email to the Escrow Co. I was dumbfounded and later found out that he didn't like the way he was asked and that was the one and only reason he had given us. According to the relative and there were also other witness, the relative was persistence in getting the info but never rude at all. Both me and my spouse are push-overs.
What really got me is when my spouse called him the next day, he made reference to my relative using derogatory term "low-class woman" (if you hear it in Mandarin, it's very bad), "her questioning was disgusting" and that she is a "nasty woman". He told us to keep "dreaming" if we want to get the property.
I am sorry for the long and winding post and taking much of your time.
I know my wife, who wrote the original post, appeared to be strong, but I can see her cracking inside because she had already envisioned living in the place.
Do you think we have any recourse at all?