Can a seller claim expenses for the sale of one property to buy another while not bringing his asking price low enough to accommodate the approved loan amount? A co-worker has been in the process of buying a modular home since February of 2011. This past week the seller told her they would not lower the asking price by $7,000 to match the loan amount. She was approved for $118,000 and they want a firm $125,000. Part of the deal was the sale of the home already on her property. It sold for $10,000 and was going toward the purchase of the new home. The deal has fallen through because of the price discrepancy and now the seller is telling her that she either can a) go ahead with the purchase of the home she can't afford, b) give them $2000 for the sale of the original home, or c) they will place a lien against her land. I for one immediately thought this was extortion and also, they have no claim to her land. She never processed the loan, therefore the land is not yet collateral. Can the seller legally do this to her?