I would really have your Realtor get answers to all these questions for you. WIth that being said I will put in my opinion. One short sale I have been working on has gone 7 weeks now with the bank asking for something new everyweek. I don't want that to be discouraging but it's also realistic. Banks are overwhelmed with the shortsales & forclosures and are not moving very quickly in many cases. The other offer maybe a back up as we many times will get backup offers on homes. I would be surprised if the bank was unaware of it though because they should be notified of all offers. Best of luck!