We were hoping to close escrow last week, that is until we received a phone call on Wednesday night stating that the seller would not fulfill his portion of the sale contingency by signing the $25K note that Countrywide required. To add further insule, we were informed that Countrywide "lost" our short sale file and would need to start their internal process all over in order to generate the final short sale acceptance letter that was required by the escrow office. Apparently this process could take up to a month.
This has been the source of much anxiety. We have already put in our notice at our condo and need to be out by the end of the month, the foreclosure sale is scheduled for June 17th and Countrywide has not yet cancelled it, and our loan rate expires in two weeks (interest rates have increased by 1% since we locked-in!).
We were told that the seller is "softening" to the idea of signing, but there's no guarentee until closing. There's been no news from Countrywide.
*Hopefully* tomorrow we will be able to meet with a real estate attorney. At this point we are looking to file a lawsuit against Countrywide and the seller for a "specific performance" and force them to perform on their end of the sale. I'm curious to see what the attorney says, especially given the sales contract had a mediation clause in it. I do know that the sellers will have to pay for our attorney's costs if we win (which since Countrywide and the seller are both in breach of contract, I don't see that there's any way that we wouldn't win).
Time will tell...