I have made a few personal short sales transactions in the last 15 years. It was not until the last 6 months most people even heard of them and all of a sudden it has become watercooler talk with so many who think they know about them. Short Sale has become part of everyones vocabulary. The many short sales I was involved that never made it to the table was due to many variable situations, many of which were due to negotiations with the bank. Since the bank is now part of your transaction, they are holding the cards to acceptance or rejection of the offer you have. My question is, why is the agent stating the bank may be changing their minds? If an appraisal came in much more than the sales price and the bank feels the sale is not within their scope of allowance there is still room for negotiation. But I would be very concerned about making additional counters.. The bank will more than likely make a counter if this is the case. Since a short sale offer is exactly that there is no acceptance until the bank makes the final decision. Getting to that decision is the long haul wait. Mostly due to a final decision makers not availble at the bank and their reluctance to make decisions quickly, unless it has been on the table before, they will wait it out to get additonal offers since they can continue to accept offers until they signed the acceptance(their back door). You need back doors as well. My advise, is the same with many others here... Get yourself an attorney. Obviously you need legal advise, especially now after the fact. Every short sale is unique and your contracts, if just the standard short sale contracts, need adendums to protect you as well,. I have seen clients literally in tears because they lost their negotiation battle after a long struggle of several offers and counters and still losing the sale. These are transactions that require some thick skin, unemotional, processes. "Sometimes you gotta know when to fold'em " Seek an attorney for your own protection, you need someone on your side. You apparently are not informed on short sales and your particular contract . Good Luck!