Basically, the banks can pretty much do what they want to. There really is no "set time" per say, and it totally is up to the bank. Have you spoke with your agent to find our what he/she says? If you received a 30 day stay on the property then that is good news that they have put off the sale of the property. It seems as though they want to work with you.
Has your agent spoke with the listing agent to find out more details? That is where I would start. I would find out what the recent information was from the bank.
The most important thing is to make sure your agent is staying in contact with the listing agent. AND, I cannot stress this enough, that the listing agent is on top of things with the bank! Short sales can be done, but they need a tenacious agent to not give up!
Joan Patterson, B.A., A.S.P., G.R.I., Realtor
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730
The banks are swamped with short sale files on their desk and they are under staffed. Ask your agent to call every day or at least send an email -try to find out if there is anything missing from the file that you can provide to expedite.
Buyers are having challenges with declining home values. I would make sure that you substantiate your new price with new comps. Your Realtor should be able to help you make a case. Just remember that the lender is already taking a loss, so investors (whom the lender represents) may be reluctant to accept a lower price, it will take patience and focus.