The information in this answer is general information and is not intended as legal advice, nor do I intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
I would say you need to work something out with their bank or they will not be able to close. Or maybe you can get the buyer to pay a little more so it will close. Not likely, but you just never know.
Unfortunately, no deal is clean these days. There are always circumstances that cause us to be creative. But it will make us better Realtors in the end.
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This should have been known prior to closing..... if the property was listed, the seller should have received an estimate of net proceeds from the agent and the owners should have received a copy of the HUD-1 prior to the closing date.