Short Sale not settling

[Joyce Ebrah]

I'm in the process of purchasing a house under 'Short Sale'. I put in my offer for the full asking price. My bid was accepted by the seller and the bank and I gave the two cash deposits of 1k and 4k. The settlement was scheduled on or before Dec. 29th 2008. That day came but the settlement did not happen because of some legal issues. I agreed to sign an addendum to extend the settlement date to January 15th 2009. That day passed and still no settlement. Right now I am being told by my realtor that all I can do is wait. I have not signed another addendum because my realtor tells me it's only the seller that is signing and not the bank, but does this mean that I'm out of contract and they can take other offers that are higher? Am I being pushed around and if so by whom? Since the bank technically broke my contract, is there any legal action that I can take against them?

:cry: