Can a seller terminate a real estate contract 1 days prior

[Sergiu Spinu]

Hello

I just got a call from my agent that the seller will back up because the purchase price is too low....

We sign all documents 1 month ago.I did all inspection and earnest money was given to the seller...I was prepare for closing tomorrow and here you are surprise....by the way forgot to mention that it's a Foreclosure Property

What do you think guys>?

Thank you

[Wayne Brooks]

Sergiu,
No fault of yours, but I don't think you know exactly what happened here.
1) The sales price in a short sale is irrelevant to seller, since he gets no extra money no matter what the price.
2) Perhaps "the price was too low" means that the lender (1st or 2nd or MI) won't waive the deficiency, without additional money from some source.
You need to talk the actual person negotiating the short sale.
There are more moving parts/negotiations/obstacles to a short sale, especially if there multiple liens, than the typical buyer will be aware of.
Again;
1) Does your contract/short sale addensum allow the buyer to back out if the deficiency is not waived....some do, some don't.
2) Have you passed a timeline in your contract where "either party may cancel the contract"(typically 90 days) or "this contract automatically terminates"(typically 120 days)?
Contract details/timelines nedded for proper answer.