Isn't it true that now a seller doesn't have to return earnest money even if the financial contingency isn't met if they miss the dates? Like if closing falls apart at the last minute.  The reason I ask is that I got a really wierd lead through active rain complaining about a local broker stating that they didn't get their earnest money back because they couldn't close.  Don't they have the option to go to mediation or small claims court but the seller can keep the money.  Someone out there must be well versed on this!

Help me understand, all you guru's!!!