Is still needed. Is this true? They are saying I will need to have Federal Court Approval on the sale and I don't understand why.
If a dismissal order has been entered, then you would normally be free to sell your property. The title company may simply want to wait until the bankruptcy case is officially closed. If you were represented by an attorney in your bankruptcy, then you should contact that person to make sure there are no unresolved issues delaying the closing out of your case.
If the dismissal order has been entered, you should be free to sell your house. No order needed.