Short Sale Approved...Settlement Scheduled...Now Bank Selling Loan?

[Jessie Martin]

I put in an offer on a short sale property in March 2013. The offer was accepted by the owner, contract signed with a settlement date of May 30, 2013, negotiator was assigned, and short sale was approved by the bank with the bank accepting our offer. By the time we got the approval/acceptance from the bank it was already the end of May so we signed an extention that gave a settlement date on or before August 1. The owner signed, and it was sent on to the bank. We soon discovered that there were multiple liens on the property which had all been satisfied, but it took some time to get proof of a clear title because one of the liens was an IRS lien. We have a clear title now, financing in place, and a settlement set for July 29th. Yesterday we heard from the bank that they plan on selling the loan to another bank on August 1. My question is whether they will be able to refuse to do the short sale that they already agreed to. Will they be able to just change their minds and sell the loan after we have paid a title company, lawyers, and appriasers to get ready for a settlement? Or if we are able to go forward and settle on July 29th before our extention runs out are they obligated to honor their aggreement? Any info would be greatly appreciated.