Legal Question in Real Estate Law in California

Without having reviewed the documents related to the sale, it is impossible to say whether or not the bank can refuse to close escrow. My guess is that if you missed the deadline to close set forth in the short-sale approval, then yes, the bank can hold escrow closing. Why are you paying the HOA dues?

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Your post is incredibly confusing. If escrow closed, title to the property transferred and the bank should have reconveyed. Either you are in escrow, or you are not in escrow, because escrow closed. You state that you are both in the post, and it is confusing. If escrow has closed, and all of the property paperwork has transferred and been recorded, the bank cannot come back and undo the transaction.