My s. s. addendum says that buyer can cancel anytime after 60 days from acceptance if Lender Approval has not been received. I sent a cancellation notice after 90 days. 10 minute lather seller's agent emailed me that they already have the approval, it just came with wrong info and will get the new one in 2 days. Since I didn't hear from them before sending my notice I went ahead and canceled it. Now, seller is saying that they had the approval by the time I cancelled and they told me right after my notice. They are not releasing my EMD. Anything I can do about it??? Thanks.

Gosh, that still sounds like it was after 60 days had elapsed, doesn't it? Are they using the same calender . . . . you gave them 30 days beyond what was required!

Did the revised and corrected "approval" arrive as promised within the 2 days?

Continue to document the sequence of events and their dates, as you have.

Do you have an Attorney involved in this? A Buyer's Agent?

Do you still want the house?

Did anyone have guts enough to put in writing the basis upon which they would withhold your EMD? Who's holding the EMD in Escrow (I hope)? And who's threatening to retain it?

Hopefully, it's not in the possession of Short Sale Seller!

generally, a notification, contract modification, etc. must be communicated to the other party before it is considered valid. the seller's agent will need to document that the approval was sent to you before you canceled, in order for it to be considered valid. the escrow holder will need to make a decision regarding the handling of the EMD.

I don't know how it is in your state but in Georgia the 10 day due diligence period begins once the lender acceptrance has been conveyed to both parties.