In CA, buyers NEVER spend any money (home inspections, etc) until the short sale lender(s) has approved the short sale in writing. There is no guarantee the lender(s) is going to approve the short sale so why would the buyer want to possibly throw their money away. I've NEVER had a short sale lender expect the buyer to spend anything until written approval is received.
Also, once the bank gives approval there is usually a very short window in which to accomplish the closing - there may not be enough time to have the inspections done and the contracts executed within the time frame that the bank has set for closing.
Arlynn B. Palmer, ESQ, SRES, CBR. CMS,. CNS
Associate Broker, REALTOR
Coldwell Banker Claire Sobel
(516)621-6300 x 205