Typically, short sale courses do not differ significantly since the procedure involved is quite structured.

You might also contact an attorney to see if that's state law or just title company procedure.

I wasn't even clear at the beginning about what the testing procedure was or how the mitigation effort would go if it was needed.

Procedures for improvement payments upon redemption have changed.

Sometimes that's okay if there's enough "profit" margin in the repairs.There are rigorous procedures and time limits if the former owner wants to redeem, otherwise you forfeit the right to be paid for those repairs. 

Is it a standard procedure to ask for 2 bank statements and 2 pay stubs.

Now I know one bad tenant can totally screw things up but with proper eviction procedure and the right deposit amount based on their screening I should be alright.

It's all spelled out on a HUD form called "Approval to Participate, Property Sales Information, Property Occupancy & Maintenance, Pre-foreclosure Sale Procedure".

It's over, the county messed up the proper notification/procedure somewhere, you'll get your deposit back.

Redlining at its finest.