Take Ralph's advice and consult with your attorney to get a direct answer to your question. A lot depends on the terms of your contract and what has transpired up until this point. There may be other ways to get you out of your deal.

Additionally, as an alternative to seeking to retain the defaulting buyer's deposit- a Seller MAY be entitled to seek, as damages, recovery of the difference between the price established in the contract w/ the defaulting buyer and the amount ultimately received for the property.

All the best,

Robbie L. Vaughn, Esq. (Robbie Vaughn)
http://www.Rlvaughnlaw.com
http://www.Bayviewestatesrealty.com

Disclaimer:
No Attorney-Client or Broker-Client relationship is formed until we have a signed agreement. This is not intended as legal advice. Please verify any and all information provided to you

I would strongly urge that you speak with your attorney about this. If you default on your responsibilities to secure a loan in good faith and get denied because of your inaction, you may lose your down payment money. I don't know your situation so it's very difficult to give you a good answer on this. Good luck.