John, you should have no problems withdrawing your Short Sale offer. Your offer should have contained a Short Sale Addendum with the Residential Purchase Agreement. The SSA ask the Buyer to state the timeframe in which he expects to receive Approval from the Seller's Bank. If that date has passed with no approval yet, you can cancel easily. The SSA should also have stated that the 17 day Contingency Time Frame would not start until the SS Bank had approved your offer, and their approval was transmitted to and accepted by your Buyer in writing. Only then would the "17 Day" clock begin ticking. As long as the 17 day Contingency period hasn't expired, your free to cancel. This form also provides direction as to the Earnest Money Deposit, and whether it could be cashed prior to the SS Bank's Approval and your Buyer's written acceptance of that Approval. If it hasn't been cashed yet, so much the better. It's all in the paperwork.