Yes Mr Obama, what do you bid?

Are the banks turning down short sales and waiting to see if the government will give them a better deal?  We lost two short sales this year that the banks turned down because they said the offer was too low.  The houses were then foreclosed and a month later they were on the market for less ($20,000!)  than our buyers had offered!  So not only do the banks intentionally lose money, they tie up our court system with the foreclosure and ruin the sellers' credit!  Is  this how TARP is supposed to work?  I'm going to forward this to my Congressman who is a recovering closing attorney and I think it would be good if I could get some examples from other agents around the country.