We negotiated a short sale with bank, they ageed on our offer. We would like to buy the house, but cannot close because we found out the owner has 3 liens on the property. At least one is a tax lien. The seller is unresponsive and so far has not paid the liens to clear the title. We asked for a release of our earnest money, but the seller keeps making excuses and won’t sign it. We have found another house but cannot make an offer until we are released from the contract on the first house. Is there any way to clear this up quickly before we loose our opportunity to get the first time home buyer tax credit. Can we sue if we loose the 8000 tax credit due to the seller of the first home not being able to close. I am angry and frustrated with this situation.