@bill, the market has appreciated 25% by the time I was going to sign. So yes, there is a high possibility that another more favorable offer is lined up to take over. Once the cancellation form was forwarded to me, I have not been able to get hold of the listing agent nor the broker.
I'm very confident that attitude was not detected by the professionals involved. Clearly, such disdane, reflects you thought you knew more than the agent. That didn't quite work out did it.
Very often buyers do things they are advised not to do. Even, when in a short sale transaction and the buyer is advised all things exists on the precarious edge of failure, they do dumb things and look for someone else to blame.
Whether it's a short sale or tranditional sale, the buyer should be very aware the listing agent has been piling up folks ready to buy who are waiting for the buyer to do something dumb. That is the status of real estate sales today. Low inventory means real, in the trenches fighting, for the good values.
Is there a chance you can get the property back? Yes, there is always a chance..
This can not be accomplished soliciting opionions from strangers on the internet. You need regain the confidence of your 'ignorant' agent, (goog luck with that) then follow, to the letter, the instructions of the professional you hired to represent you.
Too often, once the buyer or seller does something dumb, this allows the bank or investor to jump on an offer available that originates behind the curtain. The shame of it is, six months down the road you will see the other party bought it for less than your offer. Real estate transactions, such as short sales that are essentially a house of cards, are destined for failure when everyone involved does not recognoize this reality. Both you and the seller failed in this regard. You may want to reconsider if a short sale is suitable for your purchase goals.
The reality here is that once terms of the original agreement are made....all parties involved must approve for things to move forward. For whatever reason, the seller's lender did not agree to an extension. Under normal circumstances, this would terminate the agreement.
Check carefully...but there is normally verbiage that clarifies the customers obligation to sign a release of funds document should things not work out.
Keeping it real....they probably had the property under contract very shortly after the lender elected not to extend and under more favorable terms.