Is this auction legal?

I signed a short sale contract in Feb. then at the end of March, the agent (dual agent) told me that the bank is going to approve first week of April. Then they want me to resubmitted bank statement. They also deposited my money to escrow. Then few days later, the agent told me that the bank decided to put the house for auction. It was titled as: bank approved short sale. My question is that, I have signed the contract with the seller/bank, and I have not signed the release form yet, how can they put the house to auction? Is it legal? I have done short sale before and the bank put it to auction, but I have to sign the release form. Anyone has similar experience?

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• 昨日这里的柠檬大侠出巡TZLC坛时已为你的帖子拨冗释疑，应该管用。有兴趣者可前往参观讨论。 -水中捞月- ♂ (103 bytes) () 04/23/2015 postreply 07:28:57

• Took me several tries, but these two posts are most relevant -柠檬椰子汁- ♂ (218 bytes) () 04/23/2015 postreply 07:46:52

• 其实楼主不是一个人在战斗，网上一搜很多人都有这种从short sale 到auction的遭遇。关键是看合同细节到底如何。 -水中捞月- ♂ (0 bytes) () 04/23/2015 postreply 08:22:38

• very appreciate -柠檬椰子汁 detailed explanation. -meowi- ♀ (0 bytes) () 04/23/2015 postreply 08:44:14

• Very interesting question, learnt a lot from researching it -柠檬椰子汁- ♂ (0 bytes) () 04/23/2015 postreply 09:11:24