Cancellation of escrow instructions

Our buyer failed to provide lender with papers showing his child support would be decreased from $800 to $400/mo, so no loan & no purchase; otherwise loan was approved. California Association of realtors purchase agreement states "deposit...is not a contingency," yet our realtor says deposit will be returned to buyer because of some contingency. I believe we should receive the deposit because he is the one responsible for the cancellation of escrow.

It depends on the EXACT language of the escrow and unless you got a lawyer to help you out when you signed and put in a representation that he is qualiified, usually the form contract's mortgage contingency clause says "no mortgage the contract is cancelled."

You should just let it go and work on selling your house. The guy didn't rip you off and he deserves the money after all - he lost out on the house. Take all this energy you have and focus towards selling it and quite trying to get money that was never yours to begin with!!