Wow...sooooo sorry for your involvement in this bank's dispute! Luckily, you have not closed escrow yet and have the ability to find another property. Depending on how good the attorney is on the property owners end, and wether or not BOA has all of their necessary documentation in order showing clear title and the chain of ownership, this may or may not be resolved quickly...and there is the possibility that the foreclosure may be reversed, in which case, the house will not sell.
You may want to consider looking for another property in the interim...as much of a hassle as it may seem, have an alternative to this property ready to go.
Good luck! I hope they settle quickly and you are able to close escrow.
All the best,
Prudential california realty