We can't know the answer without knowing what the contract says and the events that took place.
The buyers have a limited time to get their financing approved. If they don't tell you that they can't get the loan, they could lose their earnest money. That depends on the date in the Financing addendum and whether they sent you notice of rejection.
Your Realtor can advise you whether you're entitled to the earnest money and assist you with the proper procedure to follow to request the earnest money from the escrow agent.
buyer doesn't penalized, BUT like all things having to do with contracts, there are time limits. Have your Realtor go over with you the Third Party Financing Addendum of the contract to see how much time the buyer had to give you approval of financing and if you have questions or believe the money belongs to you consult an attorney, as REALTORS are not allowed to give any kind of legal advice.
Please give me a call if I can help with anything else!
Miracle Bennett, REALTORÂ®
RE/MAX Preferred Associates, Cedar Hill