It really should not be much longer. If you are want to look at other homes in case this one does not happen I would avoid other short sales and it depends on what is available in your search criteria. It also depends on how much you like this home.
As long as the seller is communicating with the bank and as long as your Realtor has good communication with the listing agent it could all work out.
One other thing to consider. Does the listing agent have a good record for completing short sales?
So my answer, NOW, you can keep you hat in the ring but get out there and look for an alternative. You still have time to qualify for the tax credit, but not much - you need to be under contract by April 30!
Good luck and best,
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My Blog: http://www.trulia.com/blog/jeanne_feenick_-_new_jersey/
Has you agent contacted the listing agent to see what stage of the process it is. It might be closer than you think. I am a big believer that listing agent and buyers agent should at least pass emails to each other about once every week or two. That way you know where it is in the process.
Ask your agent to ask the listing agent to expidite it, they often can. You have been waiting, I get homes all the time because the buyers walked and then I do not wait very long. What I would suggest is to look at what is out there and see if there is something better. In the meantime, do not walk unless you find something that can close quicker and you like better.
To Your Success!
Once you know what the hold up is you can better evaluate. Sometimes it is as simple as satisfying a second lien holder, easily resolved. Sometimes the Seller cannot come to an agreement with the lender, not so easily resolved.
Your lucky day may be just around the corner, or it may still be months away,