There has to be a "short sale approval letter" issued by the lender (bank?). Without it, no earnest money deposit and no escow. W/o escow, how you cannot start finance unless you gave a cash offer.
You have to buyer title insurance. But the bank may care more if your offer is a partial loan offer. You can briefly check liens in county/online if you like and property tax in my state. "short sale approval letter" also has instructions/information.
Listing agent illegal occupied house now?