We have a USDA short sale that is approved.  The buyer is getting USDA financing and of course USDA is behind.  We've had one extension already.  The buyer has paid for all inspections and we are just waiting for USDA to approve so we can close.  We are needing the USDA Short Sale Approval to be extended but our closer is saying  "a second extension will not be issued - we must refer the file to deed-in-lieu to determine if that option is feasible to assist the homeowner in avoiding foreclosure.  We would be unable to entertain any further short sale offers."

Has anyone heard of this? Is there anyway around this?  Anyone have any contacts @ BOA USDA that we can speak to and turn this around? 

It seems ashame to work so hard for the seller and buyer.  We have all worked in good faith to make this happen - spending our time, effort & money up front to do what the bank demands we do to comply with their expectations. 

What is wrong with this picture.  No wonder we have problems!!