If you do get anywhere with this, please do repost and let us all know what happened.
The Kinslow Team
Coldwell Banker Residential Brokerage
Do not count on getting any short sale home you offer on.
Do you have it in writing that this is the only offer and you are "under contract".
The only way that you're going to get resolution now is to hire an attorney and have him/her start legal proceedings. Now, this will get expensive, so be prepared. And there's limited chances that you'll get a resolution that will be acceptable to you.
Probably the best thing for you to do is accept what the Seller's Agent is telling you, and stick to your guns. Then, when they tell you that your offer has been rejected, make sure that you tell the Seller's Agent that you are requiring, in writing, the rejection and cancellation of contract. Then you wait and see if you get your rejection notice.
More than likely, the whole thing is on the up and up, and you can move on to the next home. But, if the bank (or Seller, or Seller's Agent) is playing games, you may get the home in the long run. Very doubtful, but possible. I would just plan to start looking again and see if you can't find a better home. And make sure you're using a Buyer's Agent. Good luck.
Legal advice should only be given by an attorney, we as Real Estate Brokers and agents are instructed repeatedly to direct legal recourse questions to the proper authority on law.
Any Realtor that says otherwise should know better, it is instructed in every basic class and is even on purchase contracts, listing contracts and agency agreements. Tax questions are for CPA's for example, legal recourse and disputes can be handled to a point by a Broker if you have hired them in the first place, however if it accelerates to the possibility of litigation a Realtor is not able to take it any further.
A Realtor may have an opinion on it but if you have gone into this thing a sa lone wolf without representation by a licensed Real Estate Broker you are really on your own unless you pay an attorney for a consultation on this issue.
Since it is a SS the control is with the bank. The protocol of how the banks received the offer(s) is the question. Legally the agent has to present all offers to the seller.
You need to get with your agent to clarify how this happened. As always, you should consult with your lawyer and tax experts.
Also, the bank timeframe is SLLLOOOWWW so don't expect anything to happen quickly.