Mortgage Broker issues

What is the name of your state?Illinois

I'm currently being refused $1000 earnest money we placed on a home. The seller's refused to sign a release without a denial/ disallowment letter from the mortgage broker. So I requested it and according to my mortgage broker there were multiple faxes made with added information to the seller's real estate agent. I was assuming that all information was received and that our earnest was being processed because we had done all required tasks prior to the 8/13 deadline. The problem began when the seller's agent denied receipt of any written notification until after the deadline. The mortgage broker could provide me with the letter dated 8/2 but the fax I reeceived was dated 8/16. She stated she could not provide me with confirmation prior to that date because they did not keep record of all faxes and that their system kicks out after 24 hours. Is that information irretrievable? Is there anything I can provide to the court to prove the sellers received the fax? Is the mortgage broker then responsible for being unable to provide confirmation of the written notification that was faxed? Or is the dated 8/2 letter enough? I have my phone records, my contract, release letter that was refused by seller, and 2 witnesses that had phone conversations as well with the seller's agent. Is that enough? I just don't know whether to list the mortgage company along with the seller's and their agent on the court case.
Thank you and all advice is appreciated.

[MORTGAGEman]

So am I understanding that you were working with a Mortgage Broker and he couldn't get you approved, so he supposedly sent over a letter stating that? And now the seller is saying that they didn't receive it before the commitment date expired? This is why they are keeping your earnest money?

Yes, pretty much. That's the reason the seller's attorney stated as well. Also, because of it they're trying to say we defaulted and we're no longer entitled to the earnest. I know we notified the seller's agent by phone but the mortgage broker says she sent the faxes. I had no reason to doubt it. I'm just left without proof of her faxes made before the deadline.The fact that I have to go to small claims to get the money back and don't have that proof leaves me a little doubtful. My agent however, who also had correspondence with the other agent about the letter they say they never received,will back me up 100% when I go to court.
Thank you again for your input.

[MORTGAGEman]

Good Luck with your case... be sure to keep us updated!