I am sure your agent told you this should be a long process, some buyers tend to forget I fear. But until the lender sends you a written approval your deposit should not have been sent to escrow or deposited yet, your contingency period has not yet started. You should have signed a short sell addendum giving the bank up to 45 days to respond with all the legalities spelled out for you. With in that time you may back out and/or if the bank has not responded you may back out. Short sells can be a long process, especially if the bank has not approved the listing price which I might add should not be listed at a low unsubstantiated price. But lets go further and say they had an appraisal done and listed at a fair market value. If the seller is so upside down it will be a long shot. I hope the bank works with your offer. If your agent did a CMA for you and the price you offered was fair, close to what the sellers owes you may have a good chance at it, the second always is a scratcher. They could agree on a reduced amount or just say no. If the seller owes so much more than the property is worth it may go to bank owned. A lot of if's with that said if it is worth the wait and you have a good chance purchasing a property at a value go for it, but you still can look.