Is this Breach of Contract

Here is the situation, my friend put a contract on short sale 8-9 months ago.Hardship was divorce and one spouse left the home and other is living with her boy friend in this home. Home has 2 mortgages and first lender accepted the short sale and is offering 2k to the second lender. Since both spouses has job and assets ,the second is asking them to pay 18k more before they can release the lien.Sellers are not ready to pay anything to the second lender. It appears that listing agent is trying to resovle this issue by making a deal between spouses. Here is what he is trying to do:
Boy friend of one of the spouse will buy the home as he will resubmit the offer to the first lender and get it closed. However she(living with boyfriend) has to pay 18k to the second lender. Other spouse is neither getting home nor is paying anything. As for as my friend is concerned , listing agent has started telling my friend that this is hopeless case and will not get resolved as the spouses are not ready to pay to the second lender.My friend thinks that he has been used in this scam and this is kind a breach of contract. Can someone please tell me what he needs to do under these circumtances.

A contract has an experation date, no contract is good forever, most ask for exceptance in 24, 48, 72 hours or some number of days. If an extension was not signed as an addendum allowing the lender more time to review or allowing all parties additional time the contract is void.

If the seller signed the contract but the bank did not put approvals in writing, it is not binding as the lender must approve a short sale also. If the live in boy friend made an offer that was larger and a better offer, your friends offer is off the table!

In order for a short sale to close the party (owner) in default has to sign, so if there is a better offer (boy friend) which one do you think the seller signs.

If your friend was serious about buying this as a short sale, this thing should have been approved and closed 5 or 6 months ago, your friend obviously does not know what he is doing and has not taken the bull by the horns and negotiated and closed a deal.

When I do a short sale I spend hours every single day talking to the lenders, I do not go away, I am a preverbable “Pain in the Ass” to the lender and seller, and I make it known I am right here, I am serious and we need to close ASAP.

If you can not get all parties to agree and come to the table in 90 days to close, you have the wrong property, un-cooperative lenders and less than serious sellers.

How did this thing go 8 or 9 months and your friend is just now questioning why it has no agreements and has not closed.

If I can’t get cooperation and agreements in 45 to 60 days I am gone, no property is worth wasting time on if the lenders and sellers are not in agreement.

My thought is that if Ist lender does not like the offer and asking for higher price than what was offered , at that time listing agent need to find out whether the buyer is ready to pay more , If not then he can tell the buyer that he may look for other buyer by relisting the property.When the contract date expires does it give a listing agent an opportunity to bring in someone with little higher offer without letting the first buyer know about it? In case of my friend , is not his right to know why new offer is being submitted ? I just want to know what are the rights of a buyer in short sale transaction.