The #1 thing you SHOULD do is meet with your attorney and see about getting your good faith deposit back. Any standard residential Real Estate contract has language that protects you from loosing your deposit in this sort of situations. The seller seems to be in denial. Considering how the market is these days, I can't think of a single reason why you should over pay for a house in Wyndanch. There are too many good deals out there for you to get yourself in this sort of situation. If there is anything I can do to help, feel free to contact me.
Sterling National Bank