If you accept the EMD, that's a settlement of the claims, otherwise you lien the EMD as part of your litigation to enforce the sale (even though his contingencies failed to occur). 

We moved 10,000 miles away before settlement, so my grandfather signed the paperwork.

The judge set a move out date and ordered a financial settlement (rent plus court costs but no late fees).

I don' want to get too creative in this response, but there are many of ways to have your way with sellers to accomplish your profitable deals.Write an offer on a skinny contract with a delayed settlement subject to possession - always use "banking days" and build-in an automatic extension - this way you will have it when you need it, (and you will, nothing goes  as expected!)

@Eli Schwartz it shows up on both sides of the closing statement or HUD or Alta settlement statements as rehab credits. 

We purchased a REO house and settlement date was Feb 13, 2019 but disbursement date is Feb 14, 2019.

*Understanding "delayed settlement", "possession and rights of entry, signage agreements, right to market and right to auction.It is SO important if you intend to make serious money in the wholesale real estate business that you conduct your business with ethics and full disclosures.Be honest in all your marketing exposure to sellers.

We purchased a REO house and settlement date was Feb 13, 2019 but disbursement date is Feb 14, 2019.

I work at a RE firm/settlement co in the Tysons area and have been closing deals as a licensed settlement agent for 3+ years now.

If the recorded contract / statement of equitable interest was discovered by the title company before the April settlement, they would NEVER have closed the transaction without first obtaining a release.