Buyers are under contract to purchase a home. The purchase agreement contains a financing contingency clause. The buyers advise their broker that a lender has orally denied their loan application. Which of the following is true?

This option does not address the buyers' immediate concern regarding their loan denial. Contacting the seller for purchase money financing is not a necessary step here, especially since the buyers have already been informed of an oral denial. The focus should be on obtaining written confirmation of the denial instead.

While financing contingencies protect buyers during the loan approval process, there is no legal requirement for sellers to extend the contingency based solely on an oral denial. The buyers should instead seek the formal written notice to clarify their position regarding the financing contingency.

The Equal Credit Opportunity Act pertains to lending practices and does not provide an exemption from specific performance in real estate contracts. Specific performance is a legal remedy for breaches of contract and is not directly affected by the buyers' credit denial.