The lesson I learned on this transaction -- and there are always new things to learn in every single real estate closing, even after 44 years in the business -- is do not engage in a negotiating conversation with a real estate agent who is at a major league football game. I'm not saying the agent was intoxicated. But let's just suffice to say it was too much drama, simply to get the danged release of inspection contingencies.
For some reason, the buyer was rejected by his lender. According to the agent, the buyer wasn't rejected, the lender simply wanted more money down than the contract called for, which actually does mean the bank rejected the loan. So the buyer wanted to change lenders. About 10 days away from closing and without releasing any contingencies.
What do you do in this situation?
Well, if you're this Sacramento Realtor, you advise your client to issue a Notice to Buyer to Perform to release the inspection contingency. Because you have to get their attention. That NTBP protects the seller and gives the seller the right to unilaterally cancel within 2 days.
Then you negotiate, in exchange for a few days extension to close, that the buyer will immediately release the earnest money deposit to the seller as non-refundable and release all contingencies. If they are so certain the new lender will close on time, well, put your money where your mouth is. You can read more in my personal blog today at this link: Selling Homes in the Sacramento Foothills is an Art.
Certified HAFA Specialist
Sacramento Real Estate Listings
The Short Sale Savior, by Elizabeth Weintraub, available with free shipping.