Question on getting earnest money returned to me (the buyer)

[Kathy Mckee]

I have an accepted offer on a 4-plex apartment and unfortunately my realtor said to put the closing date 39 days out from acceptance since that would be the 1st of the month and it would be easier to prorate everything. Unfortunately, I went to do a VA loan and a VA loan, along with most other loans, seem to be closing in 50 days with the new TRID laws. My loan was not ready to close on the first of the month so the first business day after the missed closing date; the seller went running into his agent and filled out a notice relating to this offer saying that he is pulling the property off the market due to the missed closing date. When I questioned my agent as to what this meant, he said that the seller talked to his accountant and realized that he was $6000 short on the deal and will now not be selling his property until next year.

I’m not sure if the seller really wants out or if he thinks he can back me into a corner as I need a place to live (this was going to be owner occupied) but I’d rather lose money than basically get blackmailed. His previous offer fell through due to the buyer not having “seasoned” money and the seller’s agent told me, when I brought in the earnest money, that offer was “coming back”. Now I think the seller is just out there waiting for other offers and/or the first offer to come back and he’s keeping my earnest money.

Can I get my earnest money back?  I think this is unethical as most honest sellers would give a buyer a little extra time to finish the lending deal.  I’m already out the inspection and possibly the appraisal costs! 

Sad but I feel taken advantage of by my realtor (since being a professional he should have known better than to write an offer up to close in 39 days), the seller and this lender (who kept using bait and switch as they for the past month kept saying they need this document, then several days later now they need this document, instead of requesting everything at once). They basically kept dragging out and I kept telling the lender that I had a feeling that if we miss the closing date, that the seller would rescind the offer.

Being a new "investor" I would appreciate any advice.  Thank you in advance!