Possibly. You need to have a contract review with a real estate attorney to determine whether your earnest money should be forfeited. The original contract is key. If it says that you will get the earnest money back if you are not responsible for the failure to get financing, if it was contingent on your getting financing,then you are entitled to it. But if it says something else, then you may not be entitled to it. The thing is, the language of the contract controls.
Have a contract review, and if you have a case then sue. And if the contract also states that you are entitled to recover attorney's fees, then these should be awarded as well.
All my best.
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The most important thing for you to do is to notify the title company about this dispute as it generally has control over the earnest money deposit. It will not release the earnest money to either party until both parties have an opportunity to address the issue. The title company also has its own legal department to evaluate these disputes.
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