Form 4506 Hold-up; Rent house to buyers or charge interest? (sales, lender)

[chukkles77]

I sold my home and we were supposed to close on 7/21. However, the lender requested that the underwriter submit Form 4506-T to the IRS on 7/18 for a copy of their tax return & income verification. Needless to say, we did not make the 7/21 closing date. From what I've heard the IRS is very backed up in this particular area. The buyers don't want to lose the home, but I don't know how long to wait it out. There's a stipulation in the sales contract that if the closing does not happen within 10 days from the initial closing date, the buyers can be required to pay 8% interest per annum on the sales price of the home for every day that we go beyond the 10-days after closing date. The buyers have asked if they could rent out the home instead and move in by the end of July. I just don't know what to do. No one knows when the IRS will reply and no one knows that when they do reply if there's going to be a problem with the buyers income verification. Help!