There is no problem with BofA. The problem is with the buyer or the home. Underwriting guidelines are not soft and squishy. When someone does not get a loan it is never the banks problem. While guidelines vary with lenders when somebody has to do start from scratch that can be a red flag.
The seller is inconvenienced now because of nothing that the seller did. So the seller should get something in exchange for the inconvenience. When a lender denies a loan the seller can request a copy of the denial letter to try to gain some insight as to why the buyer was denied the loan.
I would recommend that the seller does that in this case for a few reasons. First off to make sure that the buyer actually did get DENIED rather then conveniently just getting a loan elswhere. Second, if there was a denial then getting some understanding why is helpful. That way the seller can consult with his agent to discuss the probability of the buyer getting denied again.
As I said, this is a do over meaning the buyer will require the loan contingency timeline all over again.
