[FML157]

So my girlfriend and I decided to purchase a home earlier this year. My offer for a property got accepted in mid-April. The house was being sold as a short sale needing approval from a military program called HAP.

The HAP program covers the deficiency for family members who are forced to leave/sell their homes due to service orders and are underwater on their loan. So my Realtor told me how the program should work in theory and how the time-frame should be 45 days or so. 5 months later , there has been absolutely no movement on the application and upon further research there is a huge backlog for administering this program.

Now the homeowners have left the state and rented the property in the meantime. The clause in my contract allows me to walk always after 60 days if the sale has not closed.

My research tells me that the whole process can take another several months; should I retract my offer and try to get my earnest money back and look else where? If i don't close by September 30th i will have no chance of receiving the first time home buyer tax credit. The property is at a nice price 93k (1180 sq ft, built in 06) but I'm tired of waiting. I have a newborn and would like to have my own place. But from what i gather the pickings are slim for a nice home under 100k that i can buy in a relatively normal time frame.

Any advice?

[logline]

It looks like the choice was already made for you. They rented it out. Move on.