My financing fell thru, after initial closing date. Do I get EMD?

[Neel P.]

So my lender was lagging a lot and therefore me and the sellers agreed to postpone closing date twice (we signed anAddendum). Now the official close is set for next week. This is about 50 days after signing the initial contract.

My lender just told me the underwriter said I didn't have a good enough DTI ratio so the loan was denied (I'm self employed. Property is in Missouri).

I'm scrambling to find another lender. However, in case I need to pull out, the sellers broker is saying that I might be in violation of the Loan Commitment Deadline and therefore would forfeit the EMD.

I’ve attached the parts of the initial contract here. It’s a bit confusing to me, and would love your guys take if what the broker is saying is accurate or possibly just a scare tactic.

Thank you!