How does mediation work for EMD disputes? How much does it cost?

[Neel P.]

I was under contract on a duplex and the financing fell through. 

Its within the 45 day Loan Termination Deadline period, and the sellers agent was made aware.

Long story short - the seller didn't sign an extension for the contract date, so the real estate contract is now "expired". The Seller is claiming the EMD ($3,400) is now his, and won't sign the Notice of Cancellation to release the EMD back to me.

I told the Sellers Agent that I am willing to split this 50/50 just to not deal with this, but the Seller is bitter and won't agree. 

From research, it sounds like this needs to go to mediation now

- How does this work? Who organizes the mediator? Is it via the Escrow company who is holding the money?

- How much does this normally cost? The property is in Missouri.

- I have a lawyer who can send a demand letter and prove that I am in the right here....but who does that go to? The Seller, the Escrow company, or other?

I have a feeling that if I scare the seller with a lawyer letter, he'll agree to release the EMD or go 50/50 with me so we can move on. I'm just not sure on the process here.

Thank you!