I recently had a cash transaction which was to close in two weeks and it took three months instead. There was a title issue and it took them that long to get what they needed so we could close. The buyers wanted the home. I followed up every two weeks and informed them where the file stood and we waited. It was very frustrating for the buyers as they wanted to move and make their plans. There was nothing anyone could do to move it along faster.
There's always two sides to every story and I don't feel I have enough information to comment one way or another, but I would suggest telling them very plainly how you feel and tell them you expect them as your Buyer broker to honor the fiduciary responsibility they have to you and to stop worrying about the Seller's agent or the Seller.
I will agree with Nathan Wolf, that buying foreclosures is inherently more risky than most Buyers understand. In fact I tell all my buyers that having worked both sides of the foreclosure real estate market for 20 plus years that it's my opinion that only 1 in 10 deals is actually a bargain. 6-7 out of 10 are basically fair deals at best and 1 or 2 out of 10 will be money pits. Buyers would be well advised to think long and hard before pursuing a foreclosure property.
If your Realtor is trying to get you to pay more than you can afford, then that is not in your best interest. Ultimately you have to live there and pay the mortgage. So, don't sign on anything you dont want to buy. But if you want a foreclosure or a short sale and it's taking longer than you planned, get over it and wait... otherwise you have to find a home that is ready for sale now, which generally will not be a good of a price, but that's what you're paying for.
First, discuss your concerns with your Realtor. If his answers to your concerns don't make you feel better, contact his Broker and discuss the concerns with him/her. If nothing is resolved then, you will need to 'wait it out' on the contract you are currently in with him as your Realtor. If for some reason the deal falls through and you don't want your current Realtor to continue representing you, ask him for a cancellation of agency (make sure it's in writing if you have a written contract of agency currently in effect) and then hire a new Realtor for future offers.