If you are working with a buyers agent they should be able to sort through all of the information. At the very least the agent handling the short sale should be able to tell you, a negotiator has been assigned, a BPO or an appraisal has been ordered, etc.....
In order for a contract to be valid in Massachusetts it needs to have an end date. Meaning the seller should have short sale approval by a certain date or you would close by a certain date. If it is open ended the contract may not be valid. If you would like to pul out of the deal contact a real estate attorney. Your deposit money should not be at risk if the contract was written properly. Good luck.
The best advice is to go back and read your contract then talk to your agent. The answers are always in what you have agreed to in writing. Most contracts I have seen the buyer the right to cancel a contract if contingencies have not been removed. If you cancel under your cancellation rights during the contingency period you should get your deposit back as long as you have not agree to anything different in writing. What you have agreed to will be in the contract you signed. In California if you are using the RPA (Residential Purchase Agreement and the Short Sale Addendum) The Buyer has the right to cancel the contract after the specified period (generally 45 days) and get the deposit back if the seller has not provided a copy of the letter from the lender giving consent for the short sale. As for the length of time on a short sale it depends upon the bank giving consent. My longest short sale was over a year with B of A and the buyer hung in there till the end and got a great deal. My shortest short sale was with Wachovia 29 daysâ€¦ Short sales require a great deal of patience and waiting.
Bottom line, review what you have agree to then talk to your agent.
All the best!
Did the Seller's Agent represent you? If so, did they disclose Dual Agency?
Or did you have your own Buyer Agent?
Was the Offer subject to Satisfactory Home Inspection? Did you have a Home Inspection?
Depending on how the Offer was written, you should have some options to get out of the transaction, if that is what you want to do, without losing your $1,000.00.
If you didn't have a Buyer Agent for this transaction and it falls through, please get yourself a good Buyer Agent that will look out for your best interest!
There are new rules governing how long the "servicer" of the seller's mortgage can take to respond. The question you absolutely need to have your agent ask the listing agent is:
"Has he or she sent in a COMPLETE short sale package?"
There is a long list of items the servicer needs to even CONSIDER a short sale. If the servicer did not receive EVERYTHING, then I can guarantee you that your offer is sitting at the bottom of very large stack of files.