The seller needs to agree and if they do, then I suspect they can change the date.  If there's a clear to close though, then the moving of those funds shouldn't be required for closing because everything is already set in which case the seller can just say no. Unless I'm not understanding the scenario.

Produce an addendum changing the date, get signatures from both sides and move forward or cancel the contract, seller keeps the earnest money if all deadlines (except settlement) have passed.

They are allowed to ask... if the buyer is past their mortgage contingency the seller can ...

a) grant the extension

b) deny the extension... if they cannot close by the agreed upon date, they will be in breach of contract and their earnest money will be at risk.

c) deny the extension, and at the date of closing, if they cannot close, the seller can consider the contract breached, keep the earnest money and accept any other contract waiting in the wings, or put the property back on the market, should they choose to.

It's considered a minor breach in the terms.   Technically, there needs to be additional consideration.  The buyer should pay for any actual damages, that occur as a result of this breach.  Not a lawyer, but best if you have them talk to one if it is a real big issue (such as the seller needi9ng the money to close on their replacement property and delay is causing them to go into breach.

All parties need to agree 

Subject to negotiations ... and mutual agreement in writing. 

Best answers from Alan May and David M. Dwares 

What the heck was the buyer and their agent and their lender doing prior to this request coming forth?

My State would be a state of anger towards the lender and selling agent not informing their client about the need to have things ready for closing, such as insurance, photo ID, cash to close, etc.

I know there are some clients who are told and just don't listen and do what they want.  But my state of anger would remain.

(PS, I know that is not what you meant about State)

I believe it is/was a matter that BOTH Buyer and Seller agree on Michael Elliott (remember that I'm now retired so it may have changed). If it was one sided it could get dragged out forever.

back or forward?  I see moving it back as closing early.  But we have an 8 day unilateral extension available one time to buyers.

I'd say the agents involve were asleep...What happens? Off mission

First of all, you can't have CTC until all funds for downpayment are available.  In my state there is a unilateral 8 day potential extension to contracts for such things.  Beyond 8 days the seller would have to agree.

All parties have to agree, but if they do not have funds, the lender probably cannot give final approval?

I am going to agree with Alan May and move on! He is a better typist and laid it out well. 

We do have time built into our contracts without permission. I think it is only 4 days now. So, this would require a negotiation between buyers and sellers. Depending on the excuse, the seller would most likely agree if the alternative is not closing.

Michael Elliott 

Many scenarios can happen.

Getting all their Funds Together ???!!! 

We extend or dump the buyer & start over. This should have done long before the closing in 7 days. Someone dropped the ball. We are an attorney state so the sellers attorney would find out sooner than this.

Michael Elliott: Every state has different contracts. In parts of New Jersey closing is on or about in Pennsylvania it a specific date and it must be changed in writing 

Ultimately up to the seller but I'm pretty confident that it would be granted.  Better to wait 7 days than start all over... 

Both parties must agree through an Amendment to change the close date.

The request should be in writing and then presented to the seller.  The terms of the contract determine any consequences.

The attorneys and all involved try to make it happen. Delays are not unusual. 

We presents the facts and the options, and the seller decides how they want to proceed.

Our contract provides for an automatic extension. 

Seller would have to agree to it.  I would council to require the deposit be released from escrow to the seller, or a per diem be charged, as this is an inconvenience to the seller and shows a risk that the buyer may not be as solid as once thought.  This could also jeopardize the seller's purchase if they were needing the funds from this deal to close theirs.

Probably extend closing and keep deal on track to close. If a 2nd or 3rd request is made, then it might be time start the process of putting property back to Active. But I wouldn't wait to start looking for a back up offer.

NC has an automatic “Delay in Settlement” clause. If the buyers is actively working on securing funds to close but cannot meet the settlement date, they are entitled to a 7 day grace period provided they give as much notice as possible.

That would be the grace period limit in NC, Michael. 7 days are allowed in our Contracts (used to be 14 days)! Now, to go beyond that 7 days, both parties would have to agree. Is that similar to your state?