Hi Everyone,

I have an attorney negotiating a short sale.  The attorney is talking with US Bank attorney not to them directly.  

US Bank had a PMI on this one.  US Bank approved the deal contingent on PMI approval, the PMI Approved it, US Bank said they would send the short sale documents within 2 days.  

Meanwhile, the seller moved out of the house and the REO agent that would take over after the redemption period is over (there is still 10 days left) re-keyed the property.  Two days later, the bank came back through their attorney saying "no" without offering a reason.  

We have two appraisals on the property.  One from the bank and one from the buyer.  Both show our offer to be right in line with the appraisal value.  If it was the value, they probably would have just given us a counter.  But I'm thinking that perhaps the REO agent did more than just re-key and provided an inflated BPO to kill the short sale.  I know I"m probably being a bit paranoid, but my buyers have incurred expenses in appraiasl and inspection after US Bank said "yes" verbally because we wanted to close on time.  

Any ideas on what I can do now?