tomorrow. My Real Estate agent is telling me that since we have not gotten an approval from the second bank we must submit a cancellation letter to cancel our contract by today because the house is supposed to close tomorrow. She is concerned that if we do not close tomorrow we might be at risk to lose our earnest money that we put down ($3,000). Does anyone know what my rights are to get that money back. I want to stick with this purchase, and I know that short sales can take months. I am fine with them holding the money, but if the bank does not approve the sale will I get my $3,000 back?
Thanks everyone!
The approval that we are waiting for is from the bank which owns the second mortgage for the current seller. We are not the ones with the second mortgage… we need their approval because they are owed money from that property that they are obviously with a short sale not going to get.
The second mortgage is for $134K. We have asked the bank to tell us what they require to sign off. Both agents as well as the lender are willing to contribute part/all of their commisions to cover an amount negotiable with the second bank… the problem is they haven’t even responded.

Does the seller pay the mortgage, taxes, utilities on a house with an offer waiting for bank approval? Once the bank approves and accept the short sale offer might there be additional charges if the seller has not been paying mortgage on a home where he no longer lives? If they accept my offer do they often come up with other charges left behind by the former owner?

EMC is the 1st lender. They approved the short sale for $479k and able to give $15k to the 2nd lender, CountryWide/BofA. The approval letter said that they need the money wired by August 3rd or the approval is voided. But, here is the thing - CounrtyWide/BofA has no approved the short sale yet. Anybody know how this all works???? My real estate agent is working on it but I am so anxious to find out!!!