Usually it's an either or.So one should be checked if there is a dispute over the earnest money.If both parties do not agree to the reasoning of the escrow company holding the money and how they want to dispurse then in the contract go to a mediator or go to court should have been checked.Hard to say without the full contract to review what the remedies are.In any case you will need legal to look at it.How much money are we talking here??

I lived in Nanaimo for 13 years and had a mediation practice in the Old City Quarter.

HUD doesn't do the repairs, the amount is added to the loan.They will want the mold re-mediated prior to occupancy.

Depending on the firm, she can try and deal with them directly (without her own counsel) and send the package to them and ask for mediation.

I know people in the neighborhood, so I'm trying to bring someone along today who knows the squatters and can mediate in a neighborly way.

After mediation, a settlement was reached.

You are not a mediator, and what if one of them claims that a certain belonging belongs to them vs the other person? 

Legal issues and mediation are not one of them.A 30 min call to a qualified and local professional(laws are always different) will be worth the money. 

The money should come back if you win in court or negotiate things in mediation properly.

All Realtor's roads are skewed toward cooperation and mediation amongst ourselves so be prepared to be steered in that direction by the Board even if you decide to file the complaint.