Short Sale loan problemHi here is my situation and I want to know who is right and who is wrong.I am buying a property in a short sale with BofA as a primary lean holder. I have an approval letter from BofA. There is another lean holder who we are settling with for $50k. Then there is HOA. HOA is owed about $20k. The HOA is also on the title of the property as oppose to the seller of a short sale. Looks like HOA foreclosed on the property and that's why HOA is on the title. We also agreed to settle with HOA for $17k. The lender just declined my loan after a long process that was going well. The reason they declined is because the seller is not on the title of the property and that he cannot legally be selling a place that he no longer owns. The contract with his signatures is not legal. Is the correct? My agent and the seller's agent are both telling me that this lender is unprofessional and they do not know what they are doing. They are telling me that this is very common in a short sale process where a seller is no longer on the title. They are saying that HOA will put the owners name back on the title at the last moment as soon as the loan is funded. Is this normal?June 15 2012 - Los Angeles00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.