[GDSOB]

I live in a short sale house that took 6mos to close and I was the buying broker.

The first mortgage holder doesn't need to give the second anything. However if they want to get a deal done, something will happen. Short sales are far from a standard real estate transaction. The banks have numerous disclaimers that allow multiple offers with no response required. If you had any contingencies at all with your offer, they may be negotiating with a buyer with a more straightforward offer.