I heard that BoA has been allowing borrowers to finish a short sale even after the property foreclosed, has any one had this situation with Indymac? or any other bank for that matter and share how to go about it please?

I am Realtor and my husband had this property, we were working on a short sale. Indymac assured me they were not going to foreclose and told me to call a few weeks later when I did the property had foreclose!!!! Can anyone tell me what is the best way to handle this? I have the buyer and I don't want this foreclosure on my husbands credit, please help!