We put an offer on a short-sale and after waiting 3 months, was told by the selling agent, that the banks approved. All inspections such as mold and radon was done which amounted to around $1500. After doing the inspection, it was found that mold was found in the home so we asked for a reduction.
When talking to my agent, she found out that the banks never approved the short sale and listing agent/company basically lied. I have also reviewed Listingbook and Redfin to find that the asking price has been lowered, it is no longer showing pending a sale, but rather a release from contract and it references inspection reports that I paid for out of pocket.
How is this possible if the selling agent came to us with "bank approval" of our offer? Why on earth would I spend over $1,500 on various inspections only for the seller to use that information to sell the property to another buyer?
Is that considered fraud and do I have any recourse?