Seller too eager to cancel

[Rian Ash]

Hi BP Members,

I am in a not so common situation right now. I got into contract to buy an apartment in Contra Costa, County California around 26 days back. We got into contract as soon as the property came on the property and once we got into the contract, the seller sort of realized, he might have gotten few thousand dollars extra on the deal. 

As soon as we came into the contract, the listing agent made it clear that there will be no extensions and we understood and were on track with our contingencies. Removed inspection and appraisal contingency on time. The loan contingency was supposed to be removed by Monday EOD but the lender just couldn't do that. This is a non-warrantable condo so I am working with a local bank. I have a slightly complicated file and given month end, it took then longer to provide me conditional approval. Seller issued notice to cancel yesterday. We didn't accept that and today took the loan contingency off. 

At this point, seller is harping on the point that we didn't remove loan contingency in time and wants to cancel. I understand that technically he is right, but are there any options to salvage the deal-legally? He doesn't seem to act in good faith. The lender is willing to say that the delay happened on their part and had nothing to do with the buyer.

I have spent a lot of time on this deal, and really want it to close. He is also not accepting me releasing a portion of the EMD or pay him a reasonable daily delay cost.

Thanks in advance!