Buying As Property Goes Into Foreclosure

[Peter K.]

I have an accepted offer on a property, which at the time I wrote the offer, was marketed as a short sale.  The property had a foreclosure suit filed on it in March, I wrote my offer including SSO (the short sale addendum) 4/1.  

There was a motion hearing on the foreclosure suit that the sellers didn't attend on 4/3, and judgment of foreclosure was issued on 4/17.  We agreed to a counter offer on 4/5 (I was not aware of the entry of foreclosure at the time).  

At this point, I'm wondering if I should hang in there on this house or bail--I have the right to bail at this point as we are past the agreed upon date for seller to obtain lender approval.  

I feel that the price is a fair deal for the house but I'm not stealing it.  I am in a position to have one deal going at a time but not more so I don't want to sit on this thing if it's not going through; I'd rather bail and go after another deal.

Anybody have insight as to whether or not this deal could still be approved as a short sale?  The loan is held by WHEDA if that is relevant.