The purchase contract has a paragraph that protects the buyer from this exact situation...unless you remove it.
This could have cost Calvin thousands, especially since you agreed to an additional $50 per day penalty.
I'm glad it worked out, best of luck.
Check the sales contract that you originally signed.
This matter should be discussed directly with your agent. Without seeing the actual contract, it would not be right to assume how it is written - and I cannot interfere with the agency relationship created by the offer with your agent. You should go ask a real estate attorney - for FREE advice, ask your agent, then ask his/her broker if you don't feel they have a grasp on the situation.
What kind of sale is this? REO? Short Sale? Standard?
When was your offer accepted?
What did the contract specifically say about the deposit and non-performance?
Where you pre-approved before you entered into the contract? If so, what happened to disqualify you?
Good luck !
You can refuse to sign the cancellation of escrow. But you are not entitled to the deposit. If the seller takes you to court you will most likely lose.
It is extremely important to have your loan in order, prior to making an offer.
It looks like you may learn this the 'hard way'.