Scam Artists?

[ljohnso]

What is the name of your state? Tennessee & California

I am a California resident with a property in Tennessee. I was trying to get $425,000 in financing to rehab a 24 unit apartment complex in Memphis. I paid a company a non-refundable $1000 for the application fee and another $4250 in upfront processing fees. The contract stated that if the company backed out of the deal, I would be entitled to a refund of the fees minus any expenses. The company said it would pay up to $425,000 to rehab the complex. Initially, the company said it would pay off the first mortgage of $125K and the remaining $300K would be used for the rehab. That's why I agreed to pay the $4250 in upfront processing fees. Then after we went through all the paperwork, the company changed its mind and said that it wanted me to payoff the first mortgage it would put up the remaining $300K. I couldn't pay off the first mortgage so the company declined to move forward with the deal. The Vice President of the company reiterated in an email that I was entitled to the fees minus the expenses. The VP then left the company. I finally got ahold of the the President of the company, who told me that I wouldn't get any refund of my fees because between lawyers, travel and other expenses, they've eaten through all $4250 of fees.

Am I entitled to see a detailed receipt of their alleged expenses? If so, how do I go about getting that? I highly doubt they consumed $4250 in expenses. They seem to be scam artists to me.