Court approval is the domain of the Trustee. However, we do try to make it as easy as possible for you to present a motion to sell to the Bankruptcy Court Judge.
Most contracts include an inspection addendum. Ours contains a clause that allows the buyer to inspect the property, but on a pass / fail basis. If the buyer decides to move forward with the transaction, its with the understanding that they are fully aware of the problems, if any, and that no repairs will be done, nor will compensation for any repairs be extended. Inspection is waived with this contingency, or the transaction is cancelled.
Once our negotiators are aware that the lien holder will be sending an approval for the short sale, they'll contact you and/or your attorney and request you note-up the file. You'll be sent a title report, HUD-1 statement, and the purchase and sale contract so that a motion to sell can be prepared.