Short Sale Bank Approval Contingencies are Important 
In a short sale all things are dependent on the bank and their willingness to sell the home at a loss. For the protection of the buyer, a bank approval contingency should be attached. That way if the bank approval doesn’t come through, the buyer isn’t obligated to the agreement to purchase. If all other contingencies are met (like financial contingencies, inspection contingencies, or expiration date contingencies), and the bank does approve the short sale, then the home will enter escrow. Basically the bank approval contingency in a short sale is the time between when the seller has accepted the offer and the time the bank approves or denies the short sale.
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