[quote author="jsboxer" date=1255602999]A bank (BofA) had accepted our offer on a short sale (after 4 months) and asked us for proof of funds. We provided the proof of funds as requested. The bank then went silent for 3 business days. That delay concerned us so we checked Realtytrac. We learned that an NOD was filed on the home yesterday. Is there a plausible explanation for this other than the bank is about to back out of the deal?
Thanks.</blockquote>
They may have accepted your offer, but they have no guarantee that you will follow through with the purchase. The buyer retains the right to back out until title is transferred and recorded. The bank is protecting itself and exercising its right.
In an analogous situation, sometimes tenants fail to pay the rent on time, but promise to get caught up soon. To protect themselves, landlords often still serve 3-day and 30-day notices.
Congratulations and good luck,
-IR2