If you did, they can request A & M over the Deposit.
You have a BUYER , you have a DEPOSIT, you had a CONTRACT,
why not try to resurect the Deal and write a new contract; you have some leverage!
Is your goal to sell the house, or what?
Good luck and may God bless
If the closing date has passed and there is no extension signed by all parties, the contract is dead. You need to contact a Real Estate Attorney and let them review all your paperwork to see if you are entitled to the ernest money deposit.
I am sorry to hear the lender was not able to tell the buyers sooner they could not get the loan approved. I hate it when I hear a lender after 35 days tells the buyer sorry your loan is denied. Any lender should be able to let the buyers now in a reasonable time frame...2-3 days that they could not get them approved for whatever reason that may be. Actually, if the lender provided a pre-approval letter they should have looked at all income and assets before you even when under contract.
To see what the typical loan process time frame looks like check out my blog post link is below.