I would NEVER advise any of my buyers to put down more than $1,000 when a short sale contract is written. As the other folks who have answered stated, how do you know how long it will take the bank or banks if their are multiple mortgages on the property to make up their mind. Why should you tie up your money?
I have a couple questions for you?
1) Do the terms of your contract state that you must put down more money within a certain period of time?
2) Did your agent/broker have you sign a SHORT SALE ADDENDUM when you signed the contract? There is a special addendum for short sales, precisely because the amount of time to get the banks to decide can be quite long. The default timeframe is 45 days, at which time either buyer or seller can terminate the contract, if they choose, (within 5 days) or they can continue to wait for the banks decision. I usually put in 30 days for my buyers. If you would like a copy of a blank of this form (if you haven't received/filled one out) let your broker know that you want one, and want to know why it was not included in the package of papers you signed.
3) If you signed a short sale addendum, did your agent broker check the box for timeframes to start from the date the seller delivers written notice to the buyer that the bank has approved the contract, or does it state that all time periods under the contract start at the effective date of the contract ( the date the buyer agrees to accept your offer).
If I can be of further service please give me a call.
Regency Realty Services