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Cash Buyer backs out after contingency deadline, refuses to give up EMD and come to find out the EDM was never sent

So we had a cash offer for 375 on our house (listed at 400 but had contingent offer on home so 375 and cash was worth it). 1k emd and inspection contingency. Buyer from Alaska(we are WV) never saw house in person. Has relative join inspection where he(not inspector) said the 9 year old roof needed replaced and all the deck so she should back out instead of negotiating. I should also note that the roof and deck both past as good on the inspection. One portion of the deck is “spongy” but serviceable. They take 4 days to inform us, submit paperwork and requested the EMD returned. Contingency was for 2 days. We deny their request and then are informed that the 1k was never received. Seems stupid to pursue for 1k but if we can’t get another buyer this month we lose the contingent house that has had an inspection, appraisal and 2500 EMD tied in. Not to mention the other 1500 we are out for storage and deposits lost.
Our realtors have escalated it as far as they can so do I proceed with the closing scheduled next Tuesday and then take them to court or just give up? Had they submitted it when they were supposed to or had the relative show up for the initial showing or to see the house at any time we would not be in this situation. Seems a bit useless to establish a contract if none of it is followed through.

submitted by /u/seegeatwork
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source https://www.reddit.com/r/RealEstate/comments/1h6gozp/cash_buyer_backs_out_after_contingency_deadline/

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