First and most important question... Did you have a Realtor representing you? If so, they should have placed certain contingencies (financing, loan, due diligence) in your contract that would have protected your earnest money. Unfortunately, all contingencies have expiration dates. If you did not close by those dates, then the seller has the right to keep some or all of your earnest money. Your Realtor should be able to go over the contract with you and help you to understand what contingencies were in place, passed and current that could protect or cause you to forfeit earnest money.