[Bob Wong]

Hello,The house we are selling is set to close on the 30th (We are supposed to be out on the 3rd) and is listed as a contingency in the offer on a new house which was set to close the same day. We just found out today that the second mortgage holder on the house we are purchasing is refusing to approve the short sale. We have been told we can stop the sale of our current house so we have a place to live, but is our earnest money that is in escrow forfeited if we back out of the sale on our house? Is there any recourse against the agent or the mortgage holders? If we let the sale of our house continue, are we then obligated to purchase the new house if the second mortgage holder allows an extension? Both are California residences.Thanks.Sigh, ty godged. My thought was that someone knew this was a problem but didn't say anything.real estate guy: I'm not trying to screw anyone, try reading the entire question before chiming in.