If the tenant doesn't buy the property they walk away and forfeit the option fee. 

The list is titled: forfeited property with interested parties by city.

Mattie, in a situation where you are living there, my opinion is your best option, if your lease says nothing about early termination or fees involved, would be to tell him you'll allow him to break the lease only if he forfeits the rent and deposit already paid.

But if we approve the loan and THEY do not close they forfeit the $250.00- is not a lot of money but usually stops the games.

No contingencies mean if it appraises low you'd bring the extra money needed to cover the gap or forfeit your EMD to cancel.

Either way, is this common practice, for the buyer to forfeit their earnest money deposits if the lender doesn't close on-time?

If they don't close on time and given that we have notice I expect they will forfeit the earnest deposit.

In my lease there is a clause that talks about taking possession and it essentially says that if they fail to pay all amounts owed and take possession on the date agreed, they forfeit all monies paid and I can offer it to the next person.I will typically hold it for a 2-3 days attempting to make contact because sometimes life happens and people make mistakes.

Whether this is the right way to convey out depends upon whether the forfeited business actually intends to continue operating (in which case the title insurer would want to see the entity reinstated) or whether it is truly winding up its affairs (in which case the referenced corporate laws govern and there would be no need to reinstate). 

If she fails to exercise her option, the $10,000 option deposit is forfeited.