What Should I Do Now?"

[Tony T.]

I made a cash offer on a house that was listed as a short sale with settlement within 45 days. My agent told me that the seller's agent told him that the bank approved the offer. We then signed a contract for sale with the buyers and all title work was completed and ready to go.

While waiting for the bank to close, my agent got a call from a new agent saying that he now represents the house and Freddie Mac took over the house and my contract isn't going to be honored.

WHAT? I spent over $2500 on getting financing in place and another $1000 on appliances based on the info that the original selling agent told my agent that the bank approved the short sale.

I don't know enough about short sales (very little actually) to know if someone acted inappropriately or fraudulently. I would like to get my losses back. The new agent representing Freddy Mac said that he thinks the bank never really did fully approve the short sale.

I don't know where to start as to finding who is at fault here. I would think that the original seller's agent telling my agent that the bank approved the short sale is where the fraud is.

Any advise or help is very appreciated.