Short sale ALMOST closed

[Inderpal Chadha]

Hello

I am purchasing a short sale property and it is ALMOST closed.
Here are the chain of events of last two days. Need advise.
Thursday afternoon: Docs released to escrow
Thursday after hours: I sign the docs. The seller has also signed (not sure when)
Friday morning: I wired the money to escrow and escrow confirmed the receipt of money by noon.
Friday evening: Escrow informed that they could not record as they had not received the funds from the lender (time issue).

The extension we had from the bank expired on Friday evening.

The closing agent says she will not record the sale unless she has the money from the lender and the extension.

As per the agents and the mortgage company (arranging the loan), it should not be a problem to get another extension from the Bank on Monday morning. They are all saying that since we are in escrow and all ducks are in row, the lending bank which is Green Tree will not have any issue as the bank would rather prefer to have its money than relist the property.

Questions
1.Is the property purchase closed technically just not recorded ?
2. Will the HUD change now, as we can have couple of days before we get the extension ?
3.Can the bank refuse another extension?
4.What variables I should be ready to handle?
5.Is the closing agent right in refusing to record unless she has the extension?

Thanks
Appreciate your input.