Who gets the Earnest Money Deposit?

[gdnrose]

What is the name of your state? Washington

Got a pre-approval letter stating that I was pre-approved for a no doc loan

Made an offer on a manf home. After negotiating several contingencies, the seller and I came to an agreement. Paperwork was started and submitted to loan broker and all parites requiring the information. I went straight back to Calif and sold my house and met all the criteria the sellers requested within the time frames that they requested. After all contingencies were met, it was time to continue my loan process......

The loan broker...the same one that pre-approved me....contacted me and said, "Gee, I d\idn't know you made an offer on a MANUFACTURED home" He received documentation that it was a manf home....he missed it. Anyway, he said this may be a problem. He proceeded to check with all his sources...approx 30....and only one, Countrywide, was willing to take a look at the loan package. After a few days, the loan was declined. I also checked with my bank and several internet brokers. They all said "no" because it was a combinatin "no doc" and manf home loan package.

At this point, it seemed hopeless. The sellers said they knew of a company that would loan. I did not follow up because I didn't really believe it and didn't want to waste more time. I rescinded the offer and requested my deposit back. The sellers refuse to sign the paperwork to release the deposit because they don't think I tried hard enough to get a loan.

Is contacting over 30 loan institutions not trying hard enough? How many does one have to contact before it's "hard enough"?

I have mailed a letter stating everything I've done. I have also requested the loan companies they think will give me a loan (still waiting for that information). The loan brokr has given them a list of contacts he has made. It's ridiculous that a seller can just sit on the money like this. I am not getting many answers from my real estate agent because none of this has happened to her before. I am only getting some references about Small claims court, going through arbritration, paying a lawyer......all of which cost money!

How do I get my deposit money back?

Any help is appreciated....thank you!