Buying a Short Sale - 8 months in to find out there's no contract?

[EvoXXX]

I made my offer in the middle of November 2011. Finally the short sale specialist gave us the green light to proceed with the mortgage on May 16th. My agent wrote the addendum asking the bank to close on May 31st. I got my mortgage ready for May 31st. Well, long story short - the BofA did not send the short sale approval letter yet and we're still waiting for it.

As of now, I understand there's no contract between us and the bank, although the purchase agreement has been signed, so BofA can decline the offer and we'll be left without anything but a bunch of hard pulls on our credit histories?

Any advice would be greatly appreciated.

Thank you!

[Evan Bedard]

As of now, I understand there's no contract between us and the bank, although the purchase agreement has been signed, so BofA can decline the offer and we'll be left without anything but a bunch of hard pulls on our credit histories?

Welcome and thanks for joining the community.

Unfortunately, short sales are never guaranteed and many times takes lenders months and months to make a final decision. Do you know if there is a 2nd mortgage attached to the property? If so, this is probably why it has been taking so long to complete because 2nd mortgage holders make it extremely difficult to complete a short sale because it requires their approval as well to complete the transaction..

[EvoXXX]

There is no 2nd mortgage involved. What really bothers me is that the short sale specialist gave us green light to proceed with the mortgage and he said we should be good to close, but were missing one of the most important documents.