I am selling a property through an agent and received a contract from a lawyer representing himself as agent in Dec. 2009. He stated that he would obtain conventional financing and close on March 1. 10,000.00 earnest money was placed by parties in escrow. We have received notice that FHA financing was denied on Feb 22. There is no indication that conventional financig was applied for. Our agent has provided buyer with pre approval from 2 alternate lenders and we have offered time for delayed closing. Buyer refuses to apply and threatens legal action representing himself at $275.00 per hour if we do not release escrow today (Sunday) by 5 pm pst. Our agent is out of country. We were told that binding arbitration is next step. Is this true? Are threats abuse of bar?