The bank, most likely, does not want an FHA loan because the bank believes that the FHA appraiser is going to ask for many health and safety issues to be repaired. That being said, a conventional appraiser may ask for glaring health and safery issues to be addressed, as well.
Banks are slooooooooooooooooow!
They do not work weekends, like all the rest of us on Trulia do!!
The bank has no emotional attachment to the transaction. The transaction sits on a desk in a stack and is dealt with when it hits the top of the pile.
I have a current transaction where the offer was accepted on the Feb 25th. The fully executed contract took over 2 weeks to receive back from the bank.
The buyer was not asked to provide earnest money deposit for 3 whole weeks.
I had another where the foreclosing lender could not find the Trustee's Deed for a month. The transaction was delayed closing for 4 weeks. The rate lock had to be extended, etc.
These transactions are not for the faint at heart!
This is why "Traditional" sale properties sell first and sell higher.
Hang in there. On a foreclosure you will close. It will be hurry up and wait, but you will close within 45-60 days from acceptance.
Short sale? Whole 'nother story!! Could be months and months and months.
Your professional agent will know which short selling real estate agents can perform on the short sale close for you.