You should focus on the prompt return of your earnest money. Sorry to hear about this bump - my suggestion is to shake it off and keep moving.
Unwavering Commitment to Service
Depending on how you feel about the home, you may want to talk to an attorney. As Cecelia mentioned already, you could still buy the home. Although I am not an attorney, unless there is specific language regarding a refund of your expenses in the event the seller were to default, you may not have the right to any damages of money spent for an inspection or mortgage application, etc.. However, there is likely language in your offer to purchase regarding default that may still allow you the opportunity to consummate the purchase. Seek an attorney's advise if you choose to move forward.
Kay Pearson, CRS
Real Estate One - Max Broock
31 S. Main Street
Clarkston, MI 48346
If you're still not certain simply ask local real estate attorney. Assuming this is part of the signed contract I would do the following: Send the Seller a certified letter (return receipt required) including copies of the invoices/receipts for all legitimate expenses and let them know that if you have not received full payment within 5 business days; reimbursing you for their breach of contract (refer to the purchase contract paragraph that stipulates this) , that you will be filing a lien on their home and will be taking them to court. Don't waste your money with an attorney simply take the Seller to small claims court if necessary.
When an Offer to Purchase and Contract is signed it's a legally binding contract on both parties and neither Buyer or Seller should sign it casually. Failing to honor it has legal ramifications.
Best of luck to you. and sorry for your bad experience.
Thanks, Jim Starwalt
As for whether you can get it back from the seller, the advice below is good. Check with a lawyer. And even if it's possible, unfortunately you may find that the expense in pursing it is greater than the amount you'd recover.