If by the Short Sale Contingency Date (i) Seller has not received Short Sale Lenders' Consent satisfying 1B, Seller may in writing cancel this Agreement, or
(ii) Buyer has not received a copy of Short Sale Lender's Consent satisfying 1B, Buyer may cancel this Agreement in writing.
In either case, Buyer shall be entitled to return of any remaining deposit delivered to escrow.
If you have received approval, but you also have certain contingencies/conditions that you haven't released, such as buyer investigation contingency, then you may still cancel and get your deposit back.
However, you have released your contingencies, you have received Short Sale Consent, and then you cancel, you may be liable for liquidated damages.
Ask your realtor to discuss these advisories with you.
Please see my blog for how a short sale works with tips and advice for buying one.
I agree with Lisa. Review the SSA form and you will see that the inspection period does not start until the buyer receives a copy of the written approval from the seller's lender(s). During the inspection period the buyer can decide to more forward or not (without consequence).
Yes, the buyer can change their minds even without loss of the deposit if they've not removed all of their contingencies. Usually, the buyer doesn't do any inspections or disclosures until the bank approves the short sale. During the inspection time, they can back out for a number of reasons.
Hope that helps you, good luck!!
J. Rockcliff Realtors