That is the spirit. The hard part about all of this is not whether it is an REO or short sale or regular sale, or a misrepresented listing. Honestly the hard part is finding a place that you REALLY WANT. Once you do that then dealing with all of the other crap is a pain in the ass but worth the wait if it does get done. That prior short sale you had a bad experience with WILL NOT be your last. Again, I am only suggesting that if you are a very discriminating buyer, then you would agree that the inventory sucks, and everything is indeed overpriced and that looking at as many potential opportunities as are out there is beneficial.
It is stupid to have to leave a couple thousand bucks idling away for a bank that will not respond for not just 2 months, maybe 5 or 6 months. However if that is the home you REALLY WANT, then what the heck. Ask that the realtor also moves it out of active status and into contingent status. Then you go on your merry way and continue your home search.
I agree it does suck. However if in the end it got you what you wanted… well then what the heck.