Appraisal contingency and escrow deposit
Had a property under contract for 440k with a 425 appraisal contingency. Appraisal came in at 425k and no problems until a day before closing lender said that their AVM doesn’t agree with the appraisal and we need to do a second one. I was like what’s the point of appraisal if some smuck behind the computer will determine the price. Anyways I agreed to second appraisal and extended the closing. Second appraisal comes at $400k and of course I’m not gonna drop the price and sellers won’t put up the money so for days now they been stalling and talking about getting a new lender bla bla bla.
The new closing date is supposed to happen In 2 days and I have not received termination due to appraisal.
My questions are:
1. first appraisal came in at 425k so legally they had no right to terminate but second one came in at 400. So do they have the right to get their earnest money back ?
2. Also I heard they have to present the termination letter 3 days before closing at least which they failed to do. Is that true ?
Any help would be appreciated