How do I request my broker to refund my good faith deposit?

[Behrooz K.]

I've been in the process of bidding on a short sale since October. Today after increasing my offer 4 times my broker said the bank has declined my offer once again. So I've finally decided to walk away. 

I have a $1000 good faith deposit with the broker and today he told me that he'll speak to his supervisor to see if he can get it me a refund. I don't understand why that would even be a questionable thing as I've been earnestly seeking to make this deal happen. 

Any comments, suggestions would be appreciated.

I was also thinking of writing a formal request in addition the the phone request I made today. Something like this: 

"Hi ____,

I'm writing this email to make a formal request for the refund of my good faith deposit.

I believe that I am entitled to a refund of my entire good faith deposit of $1000. Since October, we wrote 3 contracts, four if you include the amendment of the 3rd. We increased our offer price four times, starting from a price you suggested and finally stopping at 12% below bank appraisal which I believe was a reasonable offer. I did not reneged on any of those contracts and exhibited my good faith in both compliance to your requests and consistent follow ups. "