Purchasing a short sale home requires a huge investment of effort, time and resources, hundreds of hours by dozens of people never seen by anyone involved in the process. The weakest link in this carnival of convolution is the BUYER. 70% of the time they simply abandons the process after such efforts have been expended. Doing "WHAT EVER IS NEEDED" to validate the buyer is committed to the process is justifiable.
If you are stumbling a the very first step in this process, you really need to reconsider if a short sale is the right real estate transaction in which to commit yourself.
Your would be well advised to contact a local REALTOR and discuss in detail the short sale, foreclosure and auction market place. You will need to get your own representation anyway, so why not do so now so you can benefit from their experience and pursue the venues most likely to prove successful for you.
The agent to whom you refer should be COMMENDED for starting the process correctly.
Best of success,
Annette Lawrence, Broker/Associate
Palm Harbor, FL