Sellers are trying to keep deposit HELP!!!!!

[Account Closed]

Hi all!

If anyone can give advice on how to handle this I would gladly appreciate it.

I made an offer on a home it was accepted, the mortgage broker I was initially working with never answered phone calls or texts. My realtor recommended someone from PNC. Mortgage fell through because I did not provide documentation in time of why I was out of work the later part of last year due to giving birth, my HR re at the hospital I work at lacks communication skills as well. My relator made the selling agent aware. The sellers would like half of my earnest deposit, after my relator checked off the mortgage contingency. The selling agent claims since my relator did not check off line 707 of the AOS. 

This is part of the contingency my realtor checked off:

Line 197-202

If this Agreement is terminated pursuant to Paragraph S(FX2), or the mortgage loans) is not obtained for settlement, all
deposit monies will be returned to Buyer according to the terms of Paragraph 26 and this Agreement will be VOID. Buyer
will be responsible for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of this
Agreement, and any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics' lien insurance, or any fee
for
cancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation;
(3) Appraisal fees and charges paid in advance to mortgage lender(s).

Line 707 the selling agent says my realtor was supposed to check off:

Buyer and Seller agree that if there is a dispute over the entitlement to deposit monies that is unresolved_______days (180 if not specified) after the Settlement Date staled in Paragraph 4(A) (or any written extensions thereof) or following termination of the
Agreement, Whichever is earlier, then the Broker holding the deposit monies will, within 30 days of receipt of Buyer's written request
distribute the deposit monies to Buyer unless the Broker is in receipt of verifiable written notice that the dispute is the
subject of litigation or mediation. If Broker has received verifiable written notice of litigation or mediation prior to the receipt of
Buyer's request for distribution, Broker will continue to hold the deposit monies until receipt of a written distribution agreement
between Buyer and Seller or a final court order.
Buyer and Seller are advised to initiate litigation or mediation for any portion of
the deposit monies prior to any distribution made by Broker pursuant to this paragraph. Buyer and Seller agree that the distribution
of deposit monies based upon the passage of time does not legally determine entitlement to deposit monies, and that the parties
maintain their legal rights to pursue litigation even after a distribution is made.

What to do? I am lost at this point I do not know if I can trust my realtor.

TIA!!!!!