On another note, for most shortsales the listing price is not worth the paper it is printed on. A seller and listing agent come up with that price but it may not be approved by the lender. Your offer should be submitted with justification for the offer, such as an inspection report with an estimate of repairs from a General contractor. I have found a lot of General contractors will do this for free if I give them the work when the contract is accepted. A CMA should also be included with the price based on the CMA minus repairs.
I normally subtract some other things from the price and justify them but this is mainly for investors trying to get the house at the best price.
Never fall in love with a shortsale, never give them more than two weeks to approve the sale. If the listing agent has done their part a shortsale can be easy, if they have not you should walk away.
This is a common practice in short sales. The truth is that most lenders insist (and have an addendum like the one you signed), stipulating that they can keep marketing the property until the close of escrow.
I doubt that there is anything you could have done, because even if you offered $5k more, they'd do the same thing, hoping to get more.
You need to realize that in short sales these lenders and investors are losing thousands of dollars. It would be like a company in which you owned stock. You need to sell, you are going to lose 30-50% of your investment, wouldn't you try to make as much money back as possible?
Many foreclosures, and short sales have drama! Bank apparently taking bids. We instruct our clients although we have submitted a sales offer "put best foot forward" and keep looking not all offers are accepted.
RULE of thumb: if a bank likes an offer their response executed contract is within 7 -10 days.