I think you're good to go! Congrats. for wading into the waters and for sticking it out! I can't tell you how many people would have walked away from deals, given the length of time you've been at it.
You both should be very proud of yourselves. I can imagine there have been hurdles along the way, and as you've learned buying a short-sale property is not an easy task.
It's filled with many emotional ups and downs, but once you enter escrow you're starting to reach land! Soon, you'll have the home you've waited so long for.
There may be a few more hick-ups, but once approved Banks usually try to handle the sale in an expedient manner. Should anything come up, your realtor should be well equipped to take care of it, but given the information you've supplied I think you're well on your way to owning this home that you both have waited so long for.
Of course, no one can guarantee things will go according to plan, so "try" to get some sleep at night without worrying about it too much, if you possibly can.
At this point, I can imagine it's hard to contain your excitement, but just to be safe, I'd still reserve a bit of caution, within your "emotional bank," just in case something pops up that no one could have foreseen.
It's unlikely, but possible. Stay positive, and keep your intentions on moving forward and it should all work out well. I'm sure your realtor has everything under control and is doing his or her absolute best to speed things along, at this point.
Congrats.! and good luck!
Eric M. Abrams
CA DRE: R01862927