Indymac is slow. I have one in review with Indymac and it has been 2 months so far. They claimed 30-45 days but the house is scheduled for auction at the end of the month and I don't think they are even going to review the file by then.

For the earnest money, according to the MLS short sale addendum, you don't have to deposit earnest money until you receive lien holder approval. That starts the traditional timelines that would ordinarily start from mutual acceptance (i.e. earnest money deposit, inspection contingency, etc.)