For me... solved it by noticing that after I use
sudo umount /boot
the command 
ls /boot
still showed directory content. Therefore, every adjustment to the file 
/etc/default/grub  would be written to the directory on /dev/sda1 that is 
mounted over my boot directory on /dev/sda3. However, during boot, mounts won't 
take place after a selection is made in the grub menu (either manual or by 
timeout)

So, I remounted my partition:
sudo mount /boot
and noted the partition I made long time ago as a boot partion by issuing the 
command:
mount|grep boot
I then unmounted the boot partition, moved the directory out of the way, and 
made a new mount point, and mounted again by:
sudo umount /boot && sudo mv /boot /boot.backup && sudo mkdir /boot  && sudo 
mount /boot
After that, I installed the correct info to the mbr (master boot record):
sudo grub-install --recheck /dev/sda 
Edited the configuration file /etc/default/grub and ran update-grub.

Hope this helps people who stumble upon this bug looking for a solution.
Bear in mind you only try these commands when you know what each command
does, and understand the underlying logic. I leave it to you to
determine if you use MBR or uefi, or want a unbootable system.

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https://bugs.launchpad.net/bugs/797544

Title:
  grub2 waits forever for keystroke before booting default OS.  headless
  server. hang.

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