Hello Jill and thanks for your post.
As the others have mentioned, B of A's short sales are always problematic. The use of the Equator.com system, touted as being able to drastically reduce processing time, is, in fact, reducing much of the Phase 1 processing (the document gathering and logging portion of the process), but that still means that most B of A short sales take between 4-7 months to complete all three (3) stages of the short sale negotiation. While I understand how frustrating this is for you, I fear that you may have been misled in being told that there is a "verbal" approval for the sale.
As with all short sales, there is no such thing as a "verbal approval" from the lender. The lender may say to the negotiator, "things look good, and I think we'll get approval soon..." but until the approval letter is sent and received, there is, essentially, no approval. I might also add that I've yet to see any short sale with B of A where they did not lose the files and most often they seem to lose the financial statements. The average times faxed and emailed seems to be about five or six here in California.
Regarding the June 30 deadline, please note that the Senate Amendment 4344 to HR 4213, the home tax credit extension, proposed by Senator Reid has only passed through the Senate and has yet to be approved by the House. Because laws require the approval both the house and senate and president to be enforced, the provisions of the credit are not yet active. At present, the Thomas Guide with the Library of Congress shows the bill reviewed by Senate but has yet to set a date for review by the House.
While the credit is a bonus, it should not be the only reason one buys a home. In fact, with judicious care and improvements, your home should gain considerably more in value than the possible $8K refund.
I know the process of buying a short sale is very frustrating and complicated with B of A, but what you are experiencing is fairly typical for a B of A short sale, including their losing financial statements and also taking a very long time to create the approval letter. Have your agent continue talking with the listing agent and working diligently with the negotiator to obtain updates. I'm certain you'll soon see an approval letter and will be able to close on this home. In the meantime, keep your fingers crossed that the S,.Amnt is approved by the house in the near future.
Grace Morioka, SRES
Area Pro Realty
San Jose, CA