The beginning part of your question sounds like the listing agent put the house on the market before the bank approved a price for the short sale.They should have held off putting it on the market until they knew the apprasial was in and the suggested listing price given to the agent in my oppinion.
The second part with regards to the USDA loan, that shouldn't be a problem as long as the home is in good condition. Talk with your lender if this is not the case and they should be able to help you with restrictions on the loan.
The last part might be that the sellers just don't want to sell quickly. They may want to stay in the home as long as possible. They are the ones who must approve your offer before it gets sent to the bank for their approval. Short sales are much different than conventional sales and you need to hope that the agents involved know how to keep the deal moving along.
Molly Thompson, Broker Associate, APR
Your situation you described sounds very frustrating. The seller owns the short listing and is the one who should choose an offer to accept. The short sale has to approve the offer the seller accepts. I would be curious why the seller has not accepted your offer.
Possibly the seller is not wanting to accept USDA financing because this type of financing may require repairs on the home. Short sale listings are sold as is since the sellers do not have money for repairs and the short sale lender will not make repairs. You may want to look into another type of financing that may be more acceptable for a short sale.
Prudential California Realty