You can certainly consider Deal A dead if they have not accepted your counter. Just make sure you keep an accurate paper trail of offer and counter offer refusals, etc..
You can let them think you are still interested and work toward approval but you're not locked in provided your agent has protected your EMD with the proper short sale addendum giving you the option to terminate if your offer is not accepted and approved by Bank by a certain date. If that was executed properly, you can terminate at anytime up to that date, provided you still haven't received approval.
You can put an offer on Deal B, but again, you must protect yourself with some type of contingency to allow you to opt out should Deal A come back and approve the counter at lower appraised value. You can use a mortgage contingency clause, home inspection contingency, due dilligence clause, etc..
Otherwise, if Deal B comes through first, you may have to close on B and let Deal A go and get your EMD refunded. It's all about choices!
Please demand that your Agent do his/her job and represent you properly. Good Luck.
All the best,
Larry Lichtman, CNE
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell/Text: (267) 254-7994
Real Estate Sales, Management & Insurance
1611 Snyder Avenue
Philadelphia, PA 19145
Office: (215) 271-7070
If you want rock solid answers, your best place for those is a consultation with a real estate attorney who is well versed in foreclosure transactions. You might ask a title company for a recommendation, or if you have a title company already assigned to the transaction call them.
You have a Realtor representing you; aren't you listening to them.
You have already made up your mind; you're just asking for permission.
You realize that there are ethical issues here,
You do, as you will.
or if all else fails hire an attorney ans provide the contract for review . cause free advice from the internet is worth what you payed for it. nothing.