The 2008 Purchase and Sale Agreement that is published by the GAR does not have a financing contingency. All sales in GA are know considered "cash" sales at the time of closing unless you or your agent add a special stipulation concerning financing. The "automatic" contingency was elimanated with the new version of the contract.
However, the new contract does have a paragragh - no. 11 - that if "A" is selected, entitles the Buyer to a due diligence period during which the contract can be canceled for any reason. If you are past the due diligence date or did not select sub paragraph "A' in paragraph 11 or did not add a special stif on financing, you will likely lose your earnest money. In the case in have described, the decision to return a portion or all of the earnest money will rest with the seller. It would appear you have no "right" to the return of any.
The last possibility is that you signed a contract other than the GAR version, i.e., a builder's contract. These differing versions are binding in GA and then it strictly up to what you signed.
In the future, always use a Realtor. It will likely keep you out of this type problem and will get you a better contract.
If you are under a Due Diligence Period then you can cancel the contract without penalty.
Because we do not know what phase you are in within your contract and what contingencies you have or don't have we cannot possibly give you a black and white answer. Not to mention that all legal questions should be addressed to a local real estate attorney as we are not attorneys.
If you are in default of contract then you risk your earnest money as it will be distributed accordlng to the guidelines within the contract. Very seldom will a seller show mercy on a buyer in default.
Your agent should have a handle in these, ask him, there's always a solution.
The answer will depend on your local real estate laws.
Usually there are certain points in a contract to buy and sell real estate that allow a buyer to
cancel the contract without being in default.
In Colorado, one of these points is the Loan Condition, another is inspection and yet another is
insurance. Here, if you have an objection to any of these points (such as the loan terms are
objectionable to you) you can cancel the contract if you give proper notice PRIOR to the stated
Loan Condition objection deadline as spelled out in the contract.
Your Realtor should be able to advise you on this issue.