Bank: Bank of America

I have a seller with a valid hardship (husband past away 18 months ago) who hasn't made a payment since 3/2011.  She attempted modification and was denied three times before contacting me for short sale assistance.  I submitted complete package on 6/5/12.  BofA took over two months to assign a Phase 1 Negotiator (on 8/16/12) while proceeding with the foreclosure process: foreclosure sale scheduled for 8/31/12.  Postponement was requested and denied with the following message:

"Thank you for your cooperation, unfortunately the Foreclosure Postponement was denied. The Mortgage Last Paid Date was 3/1/2011. Property Scheduled for sale on 8/31/2012. Please inform homeowners, they will receive a decline letter from FHA Short Sales."

Has anyone had such an experience and have they overcome it?  I've contacted HUD and submitted an authorization form but time is short.  Any help is appreciated.