Seconds count in short sales

Home Sale Hindsight

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Q: I signed a contract to buy a short sale in January 2010. The owners filed for bankruptcy and I was told that the agent was a short sale specialist and they had a bankruptcy lawyer. The sellers' bankruptcy went to court and was made official a few months ago. Last month, the contract was approved (by the bank), but I was just now told of a second lien for over $100,000 with (another company)! Now, I'm told we're waiting to see if the other company will approve the short sale. A month has lapsed, with no word from anyone. I was told that the bank offered the (second lender) $3,000 to pay off the second mortgage, which seems to be the norm. I have basically no input on this deal and I am pretty much left in the dark. So here are my questions: 1. It has been one month since the bank approved the loan -- how long will it wait until it forecloses on the home? 2. I have been told this deal has to happen because of the bankruptcy, but it just takes time. Is this true? 3. Is ...