I believe they are recouping costs associated with loans they don't close.

It is still a seller's market in many geographic locations, so you can ask potential buyers for an extended closing period and/or with options to extend the closing period. 

This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.

Quote from @Patricia Steiner: There are several lenders who offer low/no closing cost options for first time homebuyers.

closing time line or enter an option to purchase agreement which can easily run for a year.But 20 year amortization is very short.

Is there something about the closing cost of the loan that you are referencing here? 

That leaves me with 2 houses, both rented but one of them needs to go too.All this is close to the end of a dead end street.

This week, two critical economic reports—the CPI inflation report (Tuesday, February 13) and Initial Jobless Claims (Thursday, February 15)—will provide new insights into whether the Fed will stay on its current path or begin signaling rate cuts.Real estate investors looking to finance new deals, refinance existing loans, or time their next acquisition should closely monitor how these reports shape market expectations for the Fed’s next move.Current Market ConditionsMortgage rates have remained stubbornly high due to persistent inflation and a strong labor market.

Our home is located in a great neighborhood, right next to excellent schools, close to several hospitals, and other amenities. 

Close date comes and goes and still not a word from the seller.6.