Ummmmm....yeah. You need to consult an attorney ASAP!

If you want out of the deal you should seek the advice of an attorney. It is based on what the contract states. Some ideas to ask your attorney would be if it doesn't close on Nov. 20, as written in the contarct can I void the deal? Is there a time frame written on the contract that states a responce deadline for ratification of the contract? If it is not ratified by that date is that an out? If the contact is subject to third party approval and it has not been approved yet and you have no indication when it may be, is the contract voidable? Have you already completed your home inspeaction? If the property has defects, they can be grounds to void a contract. Depending on who the lender is who is holding the loan for the seller, it may take up to 90 days to even get a responce back. If you are approved by the lender then you start the closing process which will take another 30-60 days. There may be options but you need to seek the advice of an attorney before you proceed. Let your agent know your concerns and ask him to recommend an attorney for advice.

Hi Ginger,
'
Lucky you, will the contract close on November 20,2009 or later that is good
if close on time. Actually they should disclose this asa SHORT Sale, may be
they just put close on November 20,2009 subject for bank approval of the
SHORT SALE. Check carefully wwwwith your agent..

Since you are represented by an agent they need to sit down with the listing agent and get all of the details on the home sale. They should be able to get all the information you need on the home you are purchasing and what your options are regarding your contract.

It should have been disclosed as a short sale.

And your Realtor is correct: It's very, very unusual for a short sale to close in 3-4 weeks. Maybe, just maybe, if the short sale had already been approved. (But most lenders want a signed contract before making that decision; that third-party approval is approval for the contract which obviously can't exist before the contract is signed by both buyer and seller.)

Work with your Realtor, and make sure your Realtor involves his/her managing broker. You really need to find out what the situation is with the short sale and then make a decision on that basis.

Hope that helps.