Unfortunately for you, I'm inclined from the information you provided, to agree with Mr. Thomas who has already answered. Couple of questions though. You mentioned it was a short sale. Was the seller represented by an agent? If so, your money should have gone into the Brokers Escrow account. That money shouldn't be released if the contract falls through unless both parties agree to who gets it. If you and they were not represented by a sales agent and buyerâ€™s agent then you each have learned the hard way why Realtors are licensed in each state to help the public start and complete a real estate transaction, which for most people is the largest transaction that they will ever make. As a Realtor we are bound to do what is best for our client, be it the seller, or the buyer. It is our job to know the process, the pitfalls, and to walk our clients through the entire process in order to get to the closing table and complete the transaction. It seems in your situation, both you the buyer, and the seller lost out. The seller lost their home because the short sale (a complicated process in its own right, even with professional Real Estate agents communicating with the bank to try and facilitate the process) fell through. You seem to be out your deposit, and the home that you wanted, because you were not properly represented and did not have someone to make sure that you were protected in the contract and to coach you on what you needed to do, or not do until the home was closed. I wish you the best and hope that in the future you will find a Real Estate professional that you trust and allow them to help you find your next home, and get you all the way to the closing table where youâ€™ll be handed the keys to it.