Legal Question in Real Estate Law in Maryland

Re: Promissory note

I assume what you mean is that the lender cancelled the loan on the day of settlement, so the buyer was unable to complete the transaction. If your contract was contingent on the buyer getting loan approval and the lender's action was not due to the buyer's failure to comply with loan requirements, then the buyer can walk away and recover their deposit. However, if there was no financing contingency, or if the buyer failed to provide timely documentation to the lender, causing the loan cancellation, you may be able to declare the buyer to be in default and to either forfeit the deposit or sue for any losses you sustain in having to remarket the property.

In this market, especially if you've had little interest in the property, you may wish to give the buyer a little more time to get his loan re-approved it that is an option.