if you like my answer, thumbs up me and best answer, thx!
I would ask that the lender confirm that the buyers finanicing fell through and the reason that it fell through.
I represented a seller once, where the buyer backed out the week before closing, stating financing fell though. Once we investigated further it fell through because the buyer quit his job. We requested that the seller get to keep the earnest money since it fell through as a result of a voluntary action of the buyer....and we did.
And as Jody suggested, talk to a real estate attorney also.
So sorry for your loss of a buyer, but you need to consult with a real estate attorney. The agency may not have known until now that the buyer was going to walk, but at the very least in my mind you should have the right to keep the earnest money.
I had a situation like this a year or so ago. I had the buyer and we were 1 week away from closing when he was arrested for DUI. We were unsure of his job outcome and whether he would have to spend time in jail, so we cancelled the sale. However, the seller did keep the earnest money and he paid for all the tests done on the house. Unfortunately for me and the other agent, we got nothing in return for 6mos of work and time..but thats the way the real estate game plays out sometime!
Good luck on this and I hope you find a buyer soon, you live in a beautiful part of Indiana for sure!
Realty Group Resources