BOA owns many properties so I would not want to see you rule out a large group of homes due to your experience with Bank of America. Short sales and foreclosures have been a learning experience for buyers, sellers, agents, banks and lenders. The good news is short sale and foreclosure processes have improved, and have become more streamlined since the time short sales were on the rise. Don't be discouraged, if you really like the house and can afford it, keep the offer on the table. Generally, you will lose the $1000 to cancel the deal. To be safe review your contract it will state all terms and conditions regarding the deposit in the event of cancelation from either party.