Lender accepted an offer for a short sale. Buyer opens an escrow based on the acceptance. Lender turns around and sold the property in a foreclosure prior to close of escrow. Will lender be liable to the buyer?

If you executed a purchase agreement, then the terms and conditions of your purchase agreement would be binding. Review your purchase agreement, the seller may have a clause that allows them to, but that is rare, were you represented by a real estate agent? This is more of a question for your Real Estate agent. :)

More info needed, but in general.. this is a question for an attorney who specializes in real estate law in your state. But you should start by reading the contract to see what it actually says. It's possible there was a clause that let them sell it even if they accepted a offer. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893