Seller financing between business entities is governed mainly by state law, and some states are far better suited to these types of deals than others.Next, does your purchase agreement offer you a financing contingency, or are you on the hook to close or else forfeit your earnest money?

Faced with eviction moratoriums and rent strikes, “they’ll lay off workers, miss their own obligations, and possibly wind up forfeiting their properties.”

I was going to pay him some of it (reimbursement for receipts) but he already filed the Lien.  4 months later I had to settle even though he was given 30 days to correct paperwork or forfeit. 

There was no financing contingency in the transaction so buyer chose to forfeit significant EMD.I have not verified but was told by another potential buyer that Chase bank is now requiring 18 months reserve for PI TI.

I would probably approach the tenants one more time, stating that you will involve a real estate attorney/lawyer to start the eviction process due to breach of lease agreement -OR- they can opt to break their lease and move out but forfeit their security deposit or x-times rent, whatever is in your lease agreement. 

If you commingle your personal and security deposit money you have forfeited your right to hold from the deposit.  

What is the basis they believe they should get it back after a year, and was this a non refundable holding deposit that they forfeited if they did not move in. 

@Kendall Chamberlain I have a "Non-refundable Deposit to Hold" form that specifically states that it is a deposit to hold for a specific amount of time, and should they not follow through and sign the lease/take occupancy, they forfeit the deposit.I would suggest returning the deposit, unless you spelled out in your verbal agreement that it was non-refundable.

I would not forfeit that down payment assistance forgiveness unless I had to.

If I did anything to bring legal attachments to the house, such as fines or liens, my contract was deemed in default, and all deposits forfeited.