What would you do?

[Jim S]

Listed a finished project and received 4 contacts on the house in the first 2 days. 3 were FHA and one was conventional financing. I was reluctant to go with any of the FHA due to their appraisals tending to come in low. The 4th offer was a conventional offer for 20% down and they had cash in the bank. My realtor warned me not to accept this offer due to their buyers agent's office was known to be difficult to deal with and game players. I decided to select them anyway due to the conventional financing and heavy down payment.
Closing was set for 45 days on 6/15. Two days before the expected closing we received a request from the buyer’s agent for an extension of 2 weeks due to the buyer not being able to find her W-2. My agent spoke with their mortgage company who stated everything looked great.
Closing was now set for 7/1. On 6/29 we received a call from the buyer’s agent requesting a 21 day extension due to the fact that the title company was moving. Blew me away. Where were they moving? Alaska?
My agent grilled their agent and she assured him that everything was fine and there were no problems with this deal. Gave her personal guaranty that the deal was good.
With our 7/21 closing date approaching fast, my agent called the buyer’s agent today. She admitted that they are having mortgage issues and are now trying to find another lender. There is no chance that they can put together anything in 3 days.
I normally am an easy going guy. I understand people have issues, blah, blah, blah. They have just wasted 11 weeks of my time and holding costs. We even removed all the staging furniture 3 days ago.
The question is….would you keep their $3,000 deposit?