Seller raised price 2 months after contract

[Shanequa J.]

2 months ago the bank accepted an offer for a short sale. Repairs were made and new appraisal was ordered. It came back higher. Now the bank wants more money because they said since the previous owner had a VA loan VA has to make a certain percentage from the new appraisal. I told the realtor I wasn't paying more and to foreclose. What would you do? Has anyone had anything similar happen?

[Rusty Thompson]

Did they send a counter for the new price? Or is it just word of mouth from your realtor? If the bank (which is not a offer accepted by the owner) signed a legally binding contract, they are stuck at the price!!! I can't imagine that either of the real estate agents would have even brought this up if they bank accepted your offer. If they back out because they want more money then you can sue them for liquidated damages. If everything is in line, then let your real estate agent know that the price is firm, and that you will sue if they back out. Of course that's assuming everything is in line & there is no contingency in the contract allowing them to raise the price at any time.

It all sounds a little fishy to me