I feel your pain in the waiting game you unfortunately are playing. We have several clients "on hold" waiting for bank decisions as well, so I know your frustration . I have a punching bag for my clients that says "Bank" on it for just these occassions! (lol)

You should know, Banks live in the banking world and in the banking world there are no dealines for getting back to us mere mortals, only those that say "You have to close by the end of the month or face a $100 per day penalty" deadlines or "You must have your inspections done in 5 calendar days from the date of Verbal Acceptance" deadlines. Long story short, if you want the sometimes delicious price of a shortsale, sometimes you have to lay back, put your feet up, watch the grass grow and....wait.

As to your earnest money,you should not have to worry about it because the bank contingency is still in place until they do give you an answer. This contingency will protect you for the time being.

So, now that I have written a book, the answer is this, if you are emotionally involved in the home, if this is the one you want, then wait it out. If the bank has stopped the auction, that is a good sign....

If you are not involved in the home, and want to move on to something else, don't feel like you are giving up your earnest money...you really don't have a contract with deadlines running until you get an answer back from the bank.

I would suggest just for fyi, that if you choose not to go with this short sale, before you get involved with another, get representation from a buyers agent experienced in short sales to represent You, not the seller and not the bank. It doesn't Cost you anything to use a buyers agent, but it will Save you in frustration, in time, and yes it will save you money especially working with short sales and bank owned properties.

Good luck to you in this, take a deep breath, and if this is the house you want.....keep hangin in there!

Debbi Love
debbi@saltlakehomefinders.com http://www.saltlakehomefinders.com

Your EM deposit isn't in jeopardy until you are under contract. And with short sales you are not under contract until the bank comes back and approves the price and you are told by the listing agent that they have verbal approval and then within a day or two, depending on the bank, the listing agent will receive written approval.

Do you have full agent representation with your offer? Or did you go with the listing agent with what is called limited agency? When a buyer puts an offer in with just the listing agent they have limited agency. When a buyer has their own agent from the beginning show them the home, write up an offer then submit the offer they will have full agent representation to represent them through the whole process. This does not cost the buyer any money and they're not necessarily getting a better price for the home by not having full representation.
Also, with this new Real Estate Purchase Contract that Utah has as of 1-1-09 you don't have to give a check for EM for 4 calendar days after acceptance of your offer. I have not heard of an escalation clause that trumps other offers. I know that the listing agent should have the best interest of the seller/bank in mind and therefore would be taking in multiple offers. Also, I get the feeling that banks would rather the listing agent not represent the buyer as well. I suggest that you get some good counsel on this from someone else other than just the listing agent. I hope that this helps!

Becky Nay, GRI
Keller Williams Realty
801-573-2077
beckynay@kw.com http://www.beckynay.com