Hopefully you've gotten this resolved by now. You've received some good advice.
In addition, I'd talk to the escrow officer - you should be able to get a copy of the Purchase Contract and the Escrow Instructions. And I agree, talk to your Realtor's Broker about the situation, with all the contracts in hand. Then map out your course of action. To cancel the buyer after issuing a Notice to Buyer to Perform, then cancel the Listing Agreement - in writing, if that is what you want to do.
If you do cancel with this buyer, make sure you find out from the Escrow Officer if you are responsible for any money that might have been spent so far in the transaction and what happens to the buyers Initial Deposit funds.
Hope this helps.
Leslie Eskildsen, Realtor
As seen in the Orange County Register: http://www.ocregister.com/articles/mumbo-263352-jargon-jumbo.html
YOU have the right to speak with the buyer's loan officer, or better yet call the escrow company & DEMAND that they contact the loan officers' PROCESSOR to see IF in FACT they're going to be able to close this week. Make the escrow officer demand SOLID answers for you!
Otherwise, the buyer IS likely in BREACH of contract & you can call up the escrow co. & say "Please draw up Cancellation Instructions to this contract, I want out".
Yes, the Realtor who is also representing the buyer should have verified the buyer's funds, in that the buyer should have had LIQUID funds available, should he have needed it OR it should have been disclosed up front that the buyer "may need to take out an equity loan for any cash needed".
There also should have been a time frame for the buyer to be able to "see if he could get financing" before resorting to bringing in liquid cash OR now, this equity loan cash. In my opinion the buyer should have been completely Pre-Approved prior to your even accepting the contract to begin with!
I've been a Realtor since 1996 & recently have sold almost a $1M in Santa Ana, I go all over Orange County plus 3 other surrounding counties, if you decide to give up on this buyer, feel free to contact me either by phone or email, I'm here to help.
That doesn't sound like a good situation to be in. I highly recommend you ask your realtor in writing (by email or mail or fax) for a few things. One: You need a copy of your listing agreement, your purchase agreement that is signed by all parties & the title companies information of where your escrow is opened.
Even though you are having problems with your realtor, the title officer should be able to tell you some very basic answers. Ask the title officer if the buyers deposit is sitting there. Also ask the title officer when it looks like this escrow will close.
You need to look at your listing agreement & see how long your contract is with that agent. I would ask the agent if they are willing to release you from the contract to sell your house with them.
Maybe your current realtor can make an agreement with you, to release your from your contract if this buyer doesn't go thru.
I might try going to that realtor's broker/boss to see if they can mediate this situation & get them to release your from being obligated to use them.
Coming to an agreement will be better & faster in the long run. Hope you get things worked out soon.