I’m in a Short Sale and I’ve been pre-approved for my loan and after I made my offer, which was accepted by the seller (husband) and I have a contract signed by myself and the seller (husband only), now that Obama has said there is a new stimulous package coming out, the Wife of the seller wants to cancel the sale and is trying to modify the contract already in Escrow and about to close in a couple of days. In addition, neither the agent nor the seller has allowed me access to the inside of the house with my inspectors, structural engineers, etc. and Escrow closes in a couple of days. QUESTION: Can the seller’s wife (who didn’t sign the Sales Contract) cancel the sale? She is listed as a co-owner, but the sales contract bearing the seller’s signature states that he is authorized to sign the contract as the seller.

First the "bank" has to accept the short sale, no where have I read where you said that happened,

Have you contacted the lender and expressed your concern that the owner is wanting to back out.

Also if she refuses to sign, the sale can not go though, you can sue them for the losses you have incurred according to the sales offer and acceptance at this point.

In many states, the offer is not legal and binding unless both owners have signed or there was a POA that allowed just one to sign.