SS offer rejected > Auction > Cancelled > Std Listed > SS Accept

[Ryan Best]

Not sure if my title made sense, but it will when you read the list below. I know short sales can be challenging (I've purchased three), but I've never heard of something as odd as this happening and am wondering if any of you could tell if this is just 
"business as usual" or if there are yellow or red flags popping up?  Here's what is happening:

1. Short sale in Sherman Oaks, CA.  4455 Hazeltine Avenue, Unit 302. My offer is $430.
2. Two banks involved. Waited for months (4 going on 5).  No word.
3. Property suddenly is listed for auction!  Still no word from banks.
4. A week before the auction, real estate agent said the banks rejected my offer.
5. Auction is suddenly canceled 2 days before auction.
6. One day later, property is listed on MLS as standard sale for $499k. No mention of short sale/foreclosure listing.
7. Listing is on MLS for a few days, when I get a call from my agent: "banks accepted your offer after all."
8. Agent wants my loan officer to call him; loan officer says he needs "Short sale authorization" from both banks involved. Agent says he doesn't have it. But will try to get it asap.
9. Four or five days go and still no authorization..

My intuition is starting to nag at me, and I am wondering if my offer is being held as a "last ditch" or back-up offer while a better offer is trying to be found...or maybe something else. I'm not sure if I want to proceed forward.

Any thoughts are greatly appreciated!