Alan
Your story is a sad one, but unfortunately not unusual. You do need professional assistance. This is not legal advice, but a lawyer would seem the best course.

Areas that require attention:
1. Is the buyer going to get a loan from anyone? I would require that they apply with multiple lenders, at least one direct lender.
2. Do you know why they were turned down for financing? There is a difference between being unable to obtain a loan, and not accepting a loan ...for example, FHA loans interest rates are based on down payment and credit score. If they were in fact approved, but did not want to pay the monthly payment, there is a difference.
3. Did they do an appraisal on the property?

In most transactions there is a "ccontingency period" when the buyer has so many weeks to do their investigations and to obtain financing. AFTER the contingency period expires their initial deposit is the liquiated damages...read the contract.

Call the financing source for the buyer to see what the deal is. Perhaps a simple extension will be the least costly solution at this time.

A good contract for sale and purchase spells out possible solutions for things that could happen.. There are rules how a deposit can be disbursed, A visit with the employing broker of the buyer's agent might also help.

If the purchase isn't going forward at all I definitely would contest the return of the deposit. The other broker will have to notify FREC, that's the state agency dealing with that.
Consult with an attorney or legal aid in your area.

Hi Alan,

If you need a referral to a good local Real Estate lawyer give me a call and I will give you someone to call.

Nadine Mauro
The Herman Group
561-414-0864
NadineMauroRE@yahoo.com

Hello,

If you want to sell the house to them, you might want to have the buyer realtor execute an extension to the existing contract. It doesn't necessarily mean that they want out of the contract. Unfortunately, the existing florida contract does have the financial contingency in it, which would in most circumstances give them the out of the contract. You are right--it sounds like a great deal to save the commission and not hire a realtor to market your property, but as you are finding, there are many things that a FSBO doesn't know that can cause the seller difficulty. Ultimately you might want to consult a real estate attorney. If you would like a referral to a competent agent in your area, I would be happy to assist you in finding one.

Best of luck to you,

Myke Triebold, GRI, CNAS
850-305-6256
MykeSaysSold@aol.com http://www.DestinHomeRealtor.com

What you need now is a Lawyer. You may want to write a new contract, with them putting up more money (hard money - no refunds)
and you getting in cash NOW the escrow they first put down. You will need a lawyer for all this.

Sorry about the problems.

John