If you wrote contract through a realtor, call the broker of the company.
If you did not use a realtor and the contract was between you and him than you need to go to the magistrate
Assuming you used the standard agreement of sale prepared by the Pennsylvania Assoc. of REALTORS. There is a "default" provision that may allow the seller to retain the escrow as "liquidated damages" if the Buyer defaulted regardless if there actual financial loss. I would recommend the following.
1) Get out your copy of the agreement.
2) If you had a Buyer's agent ask them if there was a notice from the seller that stated they were retaining the deposit and if so can you have copies of any of those documents. if not gather what ever paperwork you have.
3) Call an attorney to discuss you rights and options.
Hope that is helpful... My office is in your market... if you need a referral to a local attorney to assist you (assuming you don't have an agent representing you currently) then feel free to give me a call. if you have an agent I am sure they can provide a referral to you concerning this.
Why didn't they "sign off" on your reply to inspections?
What was wrong with the Inspection?
Did you have an Inspection Contingency?
Did you exceed the time limit on that Contingency?
These questions are important, and if you sue or go to arbitration, they will ask these questions:
You can paint a picture for us, of you being the victim; but even if we agree with you, what good is that?
If you did not follow the instruction of the Contract; then you will lose the Deposit.
Good luck and may God bless